October 17, 2018

Milk Markets Head In The Wrong Direction

 |  By: Know Your Market

CME spot product and milk markets were mainly lower on Wednesday. Cheddar blocks and barrels found follow through selling after Tuesday’s GDT event as blocks weakened 3 cents and barrels fell 4 cents. Blocks traded 3 loads and closed at $1.59 per lb. while barrels moved 5 lads and settled at $1.29 and a quarter. 


The block barrel spread now stands at 29 and three-quarter cents. Cheddar barrels settling at $1.29 and a quarter represents the lowest price we have witnessed since July 23, 2018. Butter traded 11 times and 1 and a half cents higher to $2.28 and a half cents per lb. Grade A nonfat dry milk lost a half cent Wednesday while dry whey added a half cent.


Class III milk futures markets had October down 6 cents at $15.56 per cwt. while November through April 2019 dropped 11-13. May 2019 through December 2019 ranged from 3 cents lower to 8 cents higher. The first half 2019 market is now offering $15.82 per cwt. while the full year stands at $16.12 per cwt.


Class IV milk was unchanged in 2018, 4 cents lower in January and February 2019, and 1-4 cents higher March through December 2019. The average Class IV first half price is offering $15.34 per cwt. and the full year is trading at $15.70.