Grade A Nonfat Milk Approaches Historic Low
In August 2015, Grade A nonfat dry milk set a low of 68 and a half cents. Ten months later, in February 2016, the market would go back to that region and establish a low of 69 cents. That was tested again in April 2016 when the price matched the 69 cent low. These three moments in history represent the lowest prices traded for great a non-fat dry milk since the product began trading at the Chicago Mercantile Exchange.
Thursday's trade of spot nonfat dry milk pierced the 70 cent threshold finished a penny and a half lower at 69 and three quarters cents. Now just a penny and a quarter from the CME spot market’s all-time low.
Elsewhere in the spot trade barrels continued their eclipse of the black market by rising four cents to $1.61 now holding a 14 cent premium over the blocks which remained unchanged at $1.47 per pound. The butter market followed the barrels' lead by rising a penny in a quarter to finish at $2.23 and three quarters, after 18 loads traded hands. That represents more than half of this week's volume now totaling 33 loads.
In response to all that happened in the spot trade, the class III markets developed a bit of a split personality. Contracts from now through May rose on average nine cents while those contracts from June to December dropped on average five cents. The whole year's average now stands at $15.22 per cwt, up a penny. Class IV markets saw little volume and remained unchanged.