Dairy Markets Continue to Buzz
A busy day of information for the dairy markets Tuesday. Global Dairy Trade event 232 had another positive move. Up overall 1.9% from two weeks prior. The butter index and Rennet Casein led the pack, both showing increases over 9% above the last trade event. Cheese index was up 3.9%, peaking to a price of $1.83/lb that we have not seen since May 2018. Whole milk powder was up 4.0 %. Lactose and Skim milk powder didn’t fair as well. Skim down 2.4% and Lactose fell 1 %.
We also had the USDA February Milk Production report. US milk production rose only 2/10 of a percent from February 2018 and the cow herd is 77,000 head less than a year ago, though unchanged in size from January’s reported numbers. Coming in at 9.36 million head. Milk production per cow was up 19 lbs from February 2018, topping out at 1,818 lbs per cow.
Strength in the Class III price was driven by the cheese market. Cheddar Blocks were up 2 ¼ cents on Tuesday to end the day at $1.58 ¼ /lb, cheddar barrels followed, up 1 ¾ cent to $1.51 even on 10 trades. Butter lost ½ cent on only 1 trade to finish at $2.28/lb.
Grade A Nonfat Dry Milk fell ½ cent to $0.30 ½ / lb while Dry whey gain a half cent to finish at $0.30 ½ cent.