Milk Markets Follow GDT Higher
Event 246 of the Global Dairy Trade took place on Tuesday with the overall index climbing a half percent. Products that gained in value included anhydrous milk fat, Rennet casein and skim milk powder which was up 2.4% to $1.2452 per lb. Products that fell in GDT were butter, down four tenths of a percent at $1.815 and cheddar which lost 2.2% and ended at $1.65 per lb. Whole milk powder was unchanged at $1.42 per lb.
The CME spot product market on Tuesday saw the butter market move a penny higher to $2.12 per lb. following 17 trades. Cheddar blocks lost 1.75 cents and settled out at $2.055 per lb. Barrels were unchanged at $2.025 despite 6 loads moving from seller to buyer. Grade A nonfat dry milk was also unchanged Tuesday ending at $1.1675. Dry whey traded another 9 load and a penny higher to 30 ¾ cents per lb.
Milk prices responded in a stronger fashion. November and December added 6 and 9 cents. First quarter 2020 prices traded 6-10 cents higher while the balance of 2020 was slightly higher. Class IV markets were up 9 and 13 in November and December also.
Grain prices stepped back on Tuesday after reservations of whether China will follow through and sign Phase 1 of a potential trade deal. Corn lost 4 cents, soybeans were down 6.5 cents, and the wheat complex softened 4-5 cents.