Milk and Product Markets Follow Global Prices Higher
Following the quiet trade on Monday, markets turned the corner for higher ground in Tuesday's session on the heels of a stronger global dairy trade. GDP event number 210 had butter up 2.9%, cheddar up 4.6%, skim milk powder up 3.6% and whole milk powder rising point 9%. The leader in today's auction was lactose rising 14.8%. As a composite the index of the seven products that were traded rose 2.7%.
Products at the CME spot dairy trade rose in concert with those performances. Dried whey lead the session off by trading a single load and moving a 1/4 cent higher to 30 3/4. Butter was up 3/4 of a cent to to 29 1/4 after seven loads traded hands. Barrel cheese, with 13 loads trading, rose 2 cents to $1.48. Blocks jumped 2 1/2 cents to $1.63 on a single load. Grade nonfat dry milk rose 3 3/4 cents on the stronger skim milk trade and GTS auction. It finishes at 77 cents with five loads moving from seller to buyer.
Positive product trade spurred milk prices to higher ground. Class III finished 12 cents higher and its average from now through December moved to a price of $15.77 cents. Class IV markets rose 6 cents and its average from now through the end of the year finished at $15.20.