Markets Take a Powder
Under current European regulations, skim milk powder can be sold into the intervention program through the end of September. As of last week, more than 1,000 metric tons were being offered into that program as a result of the low prices that continue to plague that region of the world.
The situation is not much different here in the U.S. where in the CME spot trade nonfat dry milk dropped 1/2 cent to 82 3/4 cents per pound after yesterday's gains. That's the fourth lowest close since mid April.
Butter was the only other product to trade any volume on Thursday, with prices remaining unchanged at $2.41 3/4. The cheese market saw no activity, though bids and offers did come to the table. The final price for blocks was $1.61 1/2 and barrels at $1.50 per pound, both remaining unchanged.
The yawn in the cheese market extended into the Class III market where prices were also unchanged. The average price from now through December of this year was $15.93, up a penny. Class IV markets saw greater volume than normal, especially in the period from December through April, and in the end average prices rose approximately 5 cents.