CME Market Doesn’t Jump With Global Market
The Global Dairy Trade event took place on Tuesday with the price index gaining 0.6%. Butter moved 3.3% higher to $2.50 per pound while anhydrous milkfat dropped 1.2%.
Cheddar and skim milk powder (SMP) were the big winners in the GDT trade as Cheddar moved 14.5% higher to $1.95 per pound, while SMP jumped 7.9% to 98 cents per pounds. Whole milk powder (WMP), the flagship product of the GDT event, dropped 2.9% to $1.43 per pound.
CME spot products followed the GDT trade but were unable to follow through with strength. Butter was the lone product to trade higher and added a penny to finish at $2.52 ½. Cheddar blocks were unchanged $1.66 ½ while barrels dropped 3 ¼ to finish at $1.42 ¼.
Grade A nonfat dry milk declined 2.5 cents to 92 cents. Class III milk markets finished higher however remained double digits from their peak in the third quarter. June was the lone lower month and dropped 7 cents, while July finished even. August through December moved 1 to 7 cents higher to finish with a second half average of $17.20. February 2018 moved 3 cents higher while April was up a penny.
Class IV markets had July down 7 cents and January up 25 cents.