Class III Milk Takes A Beating
The USDA released its latest cold storage report on Wednesday.
Total natural cheese added up to 1.4 billion lbs. in April. That ended up 4% ahead of last year and 1% higher than last month. Butter inventories rose 8% from last month to nearly 291 million. Butter was down 5% year over year. Beef inventories dropped 430 million pounds, down 9% from last year and 5% from March.
CME spot product markets were once again very quiet. Despite cheddar moving sharply higher yesterday on Global Dairy Trade, blocks were only able to carve out a quarter cent higher outing Wednesday. Blocks settled at $1.68 and a quarter cent following one uncovered bid. Barrels closed unchanged at $1.60 and a quarter cent per lb.
Butter added 1 and a quarter cent of value following four uncovered bids and two offers to settle out at $2.34 per lb. Grade A nonfat dry milk closed unchanged at $1.04 and three-quarter cents per lb. Dry whey lost a half cent to 36 and a half cents following three trades, moving from seller to buyer.
Class III milk markets lost 9-13 cents per cwt in June-December. The Second half of 2019 closed with an average of $16.77 per cwt. Class IV milk closed mixed ranging from 3 cents lower to 6 cents higher.