Milk Futures Rally for Part of 2017
By Mike North, Commodity Risk Management
Spot cheese traders declared a three day weekend as nobody showed up for the block and barrel trade at CME on Monday. That was not the case for powder where offers lead the markets lower to find two trades finishing 3.5 cents lower.
Butter was up 8 cents after four trades, finishing at $2.30. This was the highest price witnessed since the days immediately following Christmas. It also marks the third highest close the product has seen since mid-October.
Looking at the Class III and Class IV markets, trading took place following the session in a more subdued tone. Class III hovered around the 10-15 cent higher mark in the months from February to May while the balance of the year remained quiet. However, that story changed as the pit session neared its end. February through April prices were up as much as 20-30 cents, and May and June prices increased 10 to 15 cents. The balance of the year a mixed session of higher and lower closes. Class IV remained subdued with very little trade taking place.
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