Markets Take Hit on Global Markets
Event 199 of the Global Dairy Trade auction took place on Tuesday and resulted in the overall complex softening 3.5%. Anhydrous milk fat was up a half of a percent, buttermilk powder jumped 7.2% and skim milk powder gained 1.2%. Butter dropped 3.6% to $2.44 per pound and cheese declined 2.8% to $1.81 per pound. The flagship product of whole milk powder lost 5.5% to a value of $1.29 per pound.
Weakness in the GDT trade spilled over into the CME spot product markets. Cheddar blocks declined 6 cents to $1.63 1/4. Barrels traded four loads and ended at $1.70, down 1 1/2 cents. Butter activity was huge on Tuesday as 22 trades took place. In the end the market settled at $2.21, down 1 1/2 cents. Grade A nonfat dry milk dropped 1 1/4 cents and finished at 71 1/4 cents per pound.
With all of the negativity in the GDT and CME product markets, Class III milk futures followed suit. November was down 9 cents while December weakened 23 cents. 2018 markets were hit hard as well. January through December 2018 prices softened 5 to 16 cents with the exception of February, which dropped 21 cents. March 2018 became the first month to print a $14 in front of its price today. First half 2018 settled Tuesday at $15.13 and $15.56 for the full year.
Class IV had Decmeber 2017 down 15 cents and December 2018 23 cents lower. All other months were unchanged.