Global Butter Price Drives U.S. Markets
Global Dairy Trade event #197 took place Tuesday morning and did little by way of favors for the global dairy complex. When the dust had finally settled, the volume weighted index of the products traded in the auction dropped 2.4%.
The exceptions to the lower trade were rennet casein and Cheddar. In the Cheddar market, prices rose 1.9% to $1.87 per pound. Skim milk powder prices dropped 1.4% to 86 cents per pound. The headliner, whole milk powder, dropped 2.7% to $1.38 per pound. Butter dropped 3.6% to $2.59 per pound. Elsewhere in the fat complex, anhydrous milkfat dropped 3.4% and butter milk dropped 10.3%.
The movement to lower prices in the butter market echoes recent activity in the CME spot trade. However, the move below $2.30 on Monday brought buyers back to the CME spot market when GDT prices reflected a near $2.60 price. 22 loads traded hands on Tuesday with the final price rising to $2.33 per pound. Block cheese dropped to $1.725 per pound, barrels remained unchanged at $1.69. Grade A nonfat dry milk rose a quarter cent to finish at 82 cents.
Milk values did very little, Class III prices rose a nickel while Class IV markets dropped a nickel.