It Was a Quiet Day in the CME Spot Trade
It was a quiet day in the CME spot trade, so the milk market had to look elsewhere for its excitement. In the spot trade, only four total loads across all five products traded hands.
Butter moved three of those loads at an unchanged value to finish again at $2.38 and 1/2. The fourth load went to dry whey traded a single lot moved 1/4 cent higher and finished at 37 cents.
Grade A nonfat dry milk moved a 1/4 cent lower. It did not trade, however, it finishes at 85 and a 1/4 cents. Barrels dropped 1/4 cents to finish at $1.53 and 1/4. It also did not trade.
Likewise, no trades for blocks. It finishes unchanged at $1.58 and 1/4. Average prices among those products for this week we're as follows:
Butter $2.37 and 1/2. Blocks just under, $1.61. Barrels just under $1.57. Grade A nonfat dry milk $0.85 cents average for the week and dry way finishes with a weekly average of $0.34 and 3/4 cents.
The excitement came in the USDA's release of the April milk production report. April's numbers followed suit with previous months, extending a very slow reduction of the herd. The U.S. herd now stands at 9.4 million, down from the April figure of 9.402, which was revised 4,000 head lower.
Production continues to show improvements over last year. April's 0.6% increase was the smallest year-over-year increase, however, since January 2016. While the nation as a whole saw an increase, that was not true of every region.
Virginia, Vermont, Oregon, Ohio, New York, Minnesota, Pennsylvania, Michigan, Florida, Illinois and Wisconsin all experienced declines in April year-over-year production. Despite all of this, milk finished largely unchanged. The average for Class III futures from now through the end of the year finished just a penny higher at $16.34 cwt.
For Commodity Risk Management Group, this is Mike North. I know your markets.