Class IV Futures Higher Than Class III In 2020
Tuesday started with another Global Dairy Trade event. Overall, event 250 saw the price index fall 5.1%. Cheddar was up 1.7%, lactose show gains of 6/10 of a %, and Rennet Caesin was up 2.6%. These were not strong enough to offset the lower price move for butter – falling 2.4% from 2 weeks prior, anhydrous milk fat was down 3/10 of a %, skim milk powder fell 6.3% and whole milk powder was down 6.7%.
In the CME spot trade, we saw Cheddar continue its slide lower. Cheddar blocks fell 2 ¾ to $1.74 ¼ with 5 loads trading hands. Barrels had a nice volume with 10 loads trading, 3 bids and 2 offers to fall 4 more cents to $1.57 per lb. Our block/barrel spread now sits at 17 ¼ cents.
Butter gained ¾ of a cent to $1.98 ¾ with no loads trading, and 1 bid left. Grade A nonfat dry milk fell 1 ½ cents to $1.25 per lb. no loads trading, 2 bids and 3 offers. Dry whey fell a quarter of a cent to $0.31 per lb. with only 1 load trading hands, 9 bids and 1 offer.
Class III milk saw December fall 1 cent to $19.38, January fell 39 to $16.96, February fell 11 to $17.07. We saw March, April, and May actually trade up 1-7 cents. First half 2020 is averaging $16.97 per cwt.
Class IV milk was unchanged in December and January at $16.73, and $16.98. February fell 5 to $17.19 per cwt. We again see Class IV futures trading above Class III in 2020.