Markets React Negatively To Higher GDT Auction
GDT event 225 was released on Tuesday and was mainly higher. The leader of the index, butter milk powder, rose 16.9% to $1.34 per pound. Anhydrous milk fat rose 3.9% to $2.15 per pound. Butter rose 2.7% to $1.65 per pound. Whole milk powder followed as it rose 2.5% to $1.20 per pound. Cheddar was the only product with losses as it fell 2.2% to $1.44 per pound. The index as a whole was increased by 2.2%.
The CME spot product market was very quiet on Tuesday. Butter fell 1 cent to $2.2325 per pound. Blocks were unchanged at $1.36. Barrels were also unchanged on the day at $1.28 per pound. Grade A nonfat dry milk didn’t see any action as it was also unchanged at 91.5 cents per pound. Dry whey rose ¼ cent to 43.25 cents per pound.
The Class III markets were mainly lower on Tuesday with the November contract expiring at $14.47 per cwt. December fell 11 cents to $13.89 per cwt. 2019 Class III markets were mainly lower showing losses from 3 to 27 cents with most action in the front months. The first and second half averages are at $15.15 and $16.