Global Dairy Trade Auction Derails Markets
The global dairy trade did its best to derail the positive tone that has defined markets in the past couple of weeks.
Event number 219 produced its results early in Tuesday's trade, with butter prices falling 2.8% to $1.89 a pound while whole milk powder, the flagship contract of the trade, fell 2.2% to $1.28 pound. Offsetting those moves was a higher price for skim milk powder which rose 2.2% to finish at 97 cents and cheddar leading the charge with a 4.2% increase to $1.65 a pound.
The index of products covering the GDT auction fell seven-tenths of a percent but this did little to sway the CME spot trade where blocks rose a penny to $1.70 and a half. That stands as the single highest price witnessed since November 2017. Barrel cheese fell half a cent to $1.64 but in robust volume, 23 loads moved from seller to buyer.
Grade A nonfat dry milk rose three-quarters of a cent to 89 and quarter. There too, that is the highest priced witnessed since June 2017. Dry whey remained unchanged at 50 cents a pound while butter dropped a penny to $2.20 and a half, no trades were tendered. The Class III price average for the balance of the year advanced another 3 cents to $16.63.