Milk and Butter Markets Follow GDT Higher
Another round of higher prices was the result in the Class III milk markets on Tuesday. Price gains were on the heels of stronger global dairy trade. Event 212 of the GDP closed with an overall index up 1.9%. Rennet casein and lactose were the loan products to fall. Cheddar jumped 4.4% to $1.90 3/4 while butter gained 2.4% and settled at $2.56 cents per pound. Anhydrous milk fat added 5.8%, skim milk powder was up 3% and whole milk powder finished slightly higher.
CME product markets saw little change other than the butter market. Butter traded 24 loads and 4 1/4 cents higher to $2.38 1/4 per pound. Seven bids and two offers also showed up. Cheddar blocks barrels, grade A nonfat dry milk and dried whey all finished unchanged.
Class III milk futures gained a couple cents and May and June, July, and beyond jumped 9 to 15 cents per cwt. At the close the second half averages offered $16.74 per cwt. First half 2019 traded 4 to 12 cents higher as well. With that average coming in at $16.24 per cwt, Class IV 2018 milk ranged from even to 17 cents higher in December. The second half Class IV average now stands at $15.91. January through April 2019 prices were up 7 to 16 cents per cwt.