Class III Prices Trade Higher
Class III milk futures markets finished higher to begin the week despite a softer tone in the product market. February added 11 cents and March closed 6 cents higher. April and beyond closed 3 cents softer to 7 cents higher. May of 2019 also traded 5 cents higher. Class IV milk saw only December of 2018 trade, which ended up falling 10 cents per cwt to $14.83.
Product markets watched blocks and nonfat dry milk fall a half cent each while butter and barrels closed unchanged. Blocks traded three loads and settled at $1.46 3/4 per pound. Butter finished at $2.13 with zero loads trading while barrels closed at $1.32 on three trades. Grade A nonfat dry milk fell to 70 1/2 cents per pound. Some of the pressure on the CME nonfat dry milk market can be contributed to the European Union's decision to switch from a guaranteed purchase price on 109,000 metric ton program to a tender-based program. The switch was due to disconnect between butterfat and protein prices.