Class III Softens Following Global Dairy Trade Results
A mixed day for dairy on Tuesday. The Global Dairy Trade event started the mixed information as we saw a total index price fall ½ of a percent. Everything except butter and anhydrous milk fat saw gains. Butter fell 4.9% to a U.S. equivalent price of $1.76 and milk fat fell 5.1%. However, cheddar cheese was up 2.7% to a U.S. price equivalent at $1.72, skim milk powder gained 1.9%, whole milk powder was up 1% and rennet casein was up 4.9%.
The CME spot market also had a mixed day. Butter continued its weakness with a move 2 ¾ cents lower to $1.94 ¼. Grade A nonfat dry milk also fell 1 ¼ cents to $1.25 with 1 load trading. Dry whey was unchanged and didn’t trade any loads at $0.35 ½ per lb.
Cheddar blocks and barrels both saw loads move and the price move higher. Blocks moved 1 load gaining 1 ½ higher to $1.94 ¾, barrels moved 5 loads, gaining ½ cent to $2.26 ¼ per lb. Our block/barrel spread continues to be inverted at 31 ½ cents.
Class III milk was softer. December gained 1 to $20.41, but Jan fell 2 to $19.34, and Feb fell 7 to $18.92 per cwt. Our first half average for 2020 sits at $18.17 per cwt.
Class IV milk was unchanged in December at $16.65, but saw January fall 14 to $16.84, February fell 20 to $17.20 and the Class IV first half average for 2020 is at $17.43 per cwt.