Dairy Markets Move Lower
By Matt Tranel, Commodity Risk Management Group
In Thursday’s Class III CME milk trade, markets were able to shake off early weakness prior to product trade to finish in positive territory. Second quarter prices saw gains of 9₵ -14₵ to move back north of $16/CWT in Class III. Second half prices grew 7₵ - 9₵ to push July through December prices back to an average of $16.78/CWT.
Class IV prices started off with a weaker tone as well, however weren’t able to recover with butter’s 7₵ decline. Second quarter prices lost 23₵ - 29₵ while third quarter prices lost 21₵ - 25₵ on Thursday. Neither March, nor the fourth quarter saw any action. After Thursday’s trade the March through December average price for Class IV comes in at $15.17/CWT.
Butter on Thursday led product markets lower by trading 14 loads to finish at $2.1625, 7₵ lower on the day. The spread between cheddar blocks and barrels narrowed to mere half cent as blocks traded once and finished at $1.47 per lb. While barrels saw no trades, offers or bids and settled at $1.465 per lb. Grade A nonfat dry milk was the loan product to trade higher and gained 50₵ on two trades, 7 bids and 6 offers to finish at $0.7975.