Money
December 18, 2018

Class III Prices Claw Their Way To Higher Ground

 |  By: Know Your Market

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.

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