Milk Futures Making a Comeback
After last week's steep sell-off, Class III milk markets began this week in much better shape. November milk, which sold off 72 cents between Wednesday and Friday last week, has rebounded 46 cents after Wednesday's trade, which was up 23 cents. October finished 9 cents higher while December bounced up 13 cents.
Fourth quarter 2017 is now averaging $16.22 per cwt. First half 2018 held the majority of Wednesday's strength as futures rose 17-29 cents/cwt. That average now stands at $15.51 cents/cwt. Second half prices gained 2 to 11 cents July through November but dropped 3 cents in November and 4 in December. First half 2019 also dropped 5 to 10 cents.
Class IV markets traded in the opposite direction on Wednesday. Fourth quarter 2017 was unchanged while prices in 2018 closed 15 to 30 cents lower. June and December were the only months that didn't trade. Class IV full year average closed at $15.07.
CME spot product market results were mixed on Wednesday. Blocks were unchanged at $1.71 1/4. Barrels picked up a quarter cent on 1 bid and closed at $1.70 1/4. Butter traded 1 1/2 cent higher to $2.27 while grade A nonfat dry milk declined a quarter cent, ending up at 74 1/2 cents/lb.