Class III Prices Claw Their Way To Higher Ground
Two positive price events lead milk markets higher on Tuesday.
Global Dairy Trade event number 226 concluded with the GDT Price Index up 1.7%. That was led mostly by skim milk powder, which was up 3.4% and secondarily by whole milk powder, which was up point 0.3%. Other contributors to the higher index price were butter, which rose 4.9%, and cheddar which was up 2.2%. While this news struggled to move milk prices higher on its own, a higher spot trade allowed Class III prices to claw its way to higher ground.
Block and barrel cheese remained unchanged in Tuesday's spot session with blocks finishing once more at $1.41 and barrels finishing at $1.32. However, bidders for butter came in moving prices a penny and a half higher after seven loads moved from seller to buyer to finish at $2.20, while Grade A nonfat dry milk rose three-quarters of a cent to 94 and a quarter cent on bids alone.
Dry whey followed suit with only bids moving the price higher to 47 and a quarter Cents. That's two and a quarter over Mondays finish. By the afternoon Class III prices were all in positive territory with the average for the first six months of 2019 rising six cents to $15.17.
The Class IV market saw similar activity with their average in the first half of the next calendar year rising three cents to $15.62.