Milk Markets Head In The Wrong Direction
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.