Futures, Product Markets Have Adverse Reaction to Global Prices
Event 224 of the Global Dairy Trade led the dairy markets lower on Tuesday. Butter fell 9.6% to $1.60 per pound, whole milk powder dropped 1.8% to $1.17 per pound. Cheddar rose to 0.2% to $1.47 per pound. Skim milk powder fell 1.6% to 89 cents per pound anhydroous milk fat dropped 9.4% to $2.07 per pound.
The index of products covering GDT felt 3.5% which drove the Class III markets lower. In 2018 we saw a loss of eight cents in November at $14.47 and 20 cents in December to $14.46. 2019 Class III markets also fell 1 to 25 cents from January to November leaving the first half average at $15.15 and the second half average at $16.28.
The CME spot market was also lower on Tuesday. Butter fell 2 3/4 cents to $2.30 1/4 per pound. Blocks fell 7 cents at $1.34 cents per pound. Barrels fell 4 3/4 cents to $1.25 per pound. Grade A nonfat dry milk rose 1/4 cent to 88 3/4 cents. And lastly dried whey fell 1 cent to 42 cents.