Dairy Revenue Protection Gives Producers Day-By-Day Coverage
Dairy revenue protection made its first step forward into the world of revenue risk management on Tuesday, as market pricing became available for the product and not far off of what early indicative pricing suggested. Given that coverage can be signed up on a day-by-day basis, producers can now begin to evaluate the worthiness of this tool for their operation.
A look at the CME spot trade revealed the lower day after Monday's higher trend. Cheese prices gave back the Monday gains with blocks falling 2 and a half cents to return to $1.65 and a half while barrels fell a penny and a half to end the session at $1.36.
Butter fell a penny as well, moving backward to $2.25 after 12 loads traded hands, the most of any other product. Grade A nonfat dry milk dropped a quarter cent to finish at 85 and three-quarter cents while dry whey remained unchanged at 55 and three-quarters.
Class III milk prices, despite the lower spot trade moved higher with the average for the first half of 2019 settling 5 cents higher at $15.95. Class IV markets moved the opposite direction returning to an average price for the first half of the 2019 calendar at $15.31.