Markets Have Mixed Reaction to Global Auction
Event number 200 of the Global Dairy Trade (GDT) took place on Tuesday. Over the 9 years and 200 events that GDT has been around, more than $21 billion worth of dairy product value has traded hands to buyers in more than 80 countries.
Event 200 of GDT resulted in steep losses in the main product categories. Butter dropped 5.9% to a value of $2.27 1/2 per pound. Cheddar softened 4.2% to $1.73 3/4 while rennet casein declined 12.6% to $2.10 1/2. Skim and whole milk powder also weakened. Skim was down 6.5% and whole milk powder dropped 2.7%. Skim powder is valued at 77 cents while whole milk powder closed at $1.26 per pound.
CME product markets took on the opposite trading tone on Tuesday. Barrels gained 3 1/2 cents on 3 trades to settle at $1.67 1/2. Blocks added 1/2 cent to its value to close at $1.60 1/2. Butter finished at $2.21 1/4, up a quarter cent. Grade A nonfat dry milk lost a penny to 70 1/2.
Class III milk futures had mixed results. November was down a penny and December dropped 4. January declined 2 cents while February through June gained 1 to 4 cents. Second half 2018 softened 2 to 10 cents per cwt. At the close, first half 2018 was averaging $14.75 and calendar year 2018 was at $15.15 per cwt. Class IV saw sporadic trade. January, May and June declined 15 to 24 cents while September was down 7 and December was down 10.