Markets Move Higher Despite GDT Weakness
By Matt Tranel, Commodity Risk Management
The day after world dairy trade showed much weakness in world product prices, CME spot markets were able to turn positive gains in all markets except for cheddar blocks.
Barrels added 2₵ with seven loads trading and settled at $1.45 per pound. Butter markets also made gains to finish at $2.1975, up 3₵ on one trade. Grade A nonfat dry milk was up a penny to 81₵ on five bids and five offers.
After Wednesday’s trade, the CME price of $1.445 per pound average cheddar block and barrel price comes in 11₵ under the world GDT price of $1.555 per pound. CME butter, valued at $2.1975 holds an 8.75₵ premium $2.11 GDT price.
Class III milk prices have reacted with strength the past two days, despite weaker GDT trade. On Wednesday, all months finished higher. Second and third quarter prices jumped 17₵ - 24₵, while the fourth quarter gains were much more subdued at 2₵ - 5₵. Class IV markets saw trade in the April – July time frame. April finished unchanged at $14.40 per CWT, while May-July were up 16₵-29₵.