Class III Nearing $17
A tale of two markets Tuesday as the CME spot product trade showed gains in all but one product, but Class III milk saw a slight drop in value. Butter finished the day at $2.29 1/2/lb up 1 ¼ cent with 1 load trading, Cheddar Blocks gained ¾ of a cent to $1.70 ¾ with 7 loads moving from seller to buyer. Cheddar Barrels blew past Barrels to gain 4 cents and finish at $1.74/lb
Grade A Non Fat Dry Milk gained ¾ of a cent with no loads trading and just 1 bid to finish the day at $1.06/lb and Dry whey stayed unchanged at $0.34 3/4/lb. No loads trading on only 1 bid and no offers.
The Class III milk markets were down1-11 cents in 2019 trading months. May ended the day down 5 cents to 16.45 and June off 7 cents to 16.55. Second half average came in at $16.93.
We also saw the results Tuesday on the Global Dairy Trade Event 235. Though the overall index saw a gain just shy of half a percentage point, the product results were mixed. Skim Milk powder drove most of the gain, showing an increase of 2.8% over 2 weeks prior. Anhydrous Milk Fat gained 1.4%, Rennet casein gained 3.1% and Butter held steady.
Cheddar prices however fell 2.4% to an average of $1.91/lb and whole milk powder fell half a percentage point. Lactose also fell 2.7% averaging $0.40/lb.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.