Global Butter, Cheese Prices Drop
Event #201 of the Global Dairy Trade took place on Tuesday and resulted in the overall price complex gaining four tenths of a percent. In the major markets, butter dropped 11.1% to $2.03 per pound while Cheddar declined 2.9% to $1.68 per pound.
The powder markets of skim and whole milk powder moved in the opposite direction. Skim milk powder jumped 4.7% to 81 cents per pound while whole milk powder moved 1.7% higher to $1.29 per pound.
The CME spot product markets saw further erosion in the Cheddar block market. Blocks dropped 4 1/4 cents after 9 trades took place, settling at $1.47 per pound. Barrels gained 3/4 of a cent and widened the barrel to block spread to 10 cents, settling at $1.57 per pound. Butter traded 20 loads and 2 1/2 cents higher and ended up at $2.22 1/2 per pound while grade A nonfat dry milk was unchanged at 71 1/4 cents per pound.
Class III milk futures were mainly lower. December closed at $15.41 per cwt, down a penny. First quarter 2018 declined 7 to 12 cents while establishing new lows in both January and February. The 2nd quarter closed 4 to 7 cents softer. First half 2018 is now offering $14.64 per cwt while the full year is at $15.20.
Class IV milk markets did not trade on Wednesday.