Class III Milk Rebounds Tuesday
Whiplash continues in our milk markets, as cheese marched higher. Class III milk rebounded nicely Tuesday after and out of character sell off Monday. The CME spot trade saw Cheddar blocks and barrels show strength as blocks gained 3 ½ cents to $1.85 per lb. with no trades, 2 bids and 1 offer and barrels gained 4 ½ cents to $1.78 ¼ with 5 loads trading 1 bid and 1 offer. Butter was unchanged with no loads trading at $1.60 ½.
Grade A nonfat dry milk gained 4 ½ cents to $0.98 ½ per lb. with 5 loads trading hands, 9 bids and 4 offers. Dry whey was our outlier, falling a penny to $0.36 ¼ on 5 trades 9 bids and 1 offer.
The Global Dairy Trade event 260 started the day with an overall index up 1% from two weeks prior. This was led by lactose, up 15.6% and skim milk powder that gained 6.7%. Butter fell 1.9%, and Cheddar fell 6% over the previous auction. Whole milk powder fell slightly lower losing half of a percent, and Rennet Casein fell 1.9% from prior trade.
Class III milk saw May gain 3 to $12.27, June gained 62 to $17.28, and July gained 57 to $16.82. Second half gained 15-57 and is averaging at $16.48 per cwt.
Class IV was unchanged in May to $10.61, June gained 64 to $13.50 and July was limit higher, up 75 cents to $14.38 per cwt. Second half class IV now averages at $14.81 per cwt.