Continued Positive Bias Lingers In The Dairy Markets
As the possibility of a deal with Mexico grows, a continued positive bias has lingered in our dairy markets, providing some elevation to nearby Class III futures. In the last four trading sessions the month of October, for example, has risen 66 cents. The average for the last four months of the year now stands at $16.51 cents, 15 cents higher than Monday.
Despite the positive tone in nearby contracts, the calendar has taken an opposite direction. That price now sits at $16.20, just a penny shy of Monday's finish. The average for Class IV milk now stands at $16.03 for the 2019 calendar, up just a penny from Monday. A look at the CME spot trade revealed some optimism as well. Block cheese rose a penny and a half, however, it did not trade. It settles at $1.66 and three-quarters. Barrels remained unchanged but had the highest volume of the spot session with seven loads moving from seller to buyer. It again finishes at $1.61.
Butter rose a half a cent after four loads traded hands. Its final price was $2.30 cents. Grade A nonfat dry milk traded a handful of loads, rose three quarters of a cent and finishes at 87 and three-quarters. Dry way rose to yet again another record final prices 48 and a half cents after a half cent climb. It did not trade.