August 18, 2020

Milk Markets Go Up To Only Come Back Down

 |  By: Know Your Market

What goes up, must come down. Red moved into our markets on Tuesday, with Class IV showing some strength. The Global Dairy Trade event started out day with the index of Oceana dairy products down 1.7% from the previous event 2 weeks ago. Butter was down 2%, Anhydrous Milk Fat was down 2.9%. Cheddar fell 3.6% to a US equivalent price of $1.56/lb. Whole Milk powder also slid 2.2%. Skim Milk powder was the lone product to see a price move higher, trading 1.1% above two weeks ago.

The CME spot trade saw similar declines. Butter moved 2 cents lower with 18 loads trading hands to 1.52/lb. Cheddar blocks fell 1 3/4/lb but failed to move a load with 2 offers and no bids to settle at 1.79 3/4. Barrels traded 1 load and fell 6 cents to 1.40. Our Block/barrels spread sits at 39 ¾ cents. 

Grade A Non Fat Dry Milk moved back above $1/lb for the first time in since July 15, trading 6 loads at 1.01 ¼, up 3 ¼ cents. Dry whey moved 3 loads, falling a quarter of a cent to $0.34/lb.

Class III Milk fell 1 in Aug to 19.84, Sept fell 40 to 16.00, and October gave back 25 cents to 16.92/cwt.  2021 was quieter with prices varying from 8 lower to 4 cents higher. 

Class IV Milk gained 1 in Aug to 13.15, Sept was unchanged at 13.51, and Oct gained 13 to 14.32/cwt. 2021 saw gains of 5-21 cents