Milk Markets Soften Following Global Dairy Trade Auction
Event 237 of the Global Dairy Trade took place on Tuesday with the overall index losing 3.4%. Cheddar declined 14% to $1.80 per lb. Just last event cheddar had jumped 15.2% to $2.20 per lb. Butter dropped 10.3% to $2.13 per lb. Skim milk weakened 4% and whole milk powder fell 1.5%.
CME spot product markets were highlighted by the barrel market while not much happened in the other product markets. Barrels sold off another 3 cents to $1.485 while moving 8 loads. Grade A nonfat dry milk moved five loads from seller to buyer but ended unchanged at $1.0525 per lb. 7 uncovered bids and 12 offers were left hanging. Butter, cheddar blocks and dry whey were all unchanged as well. Butter settled at $2.35 per lb., blocks at $1.72 and dry whey finished at 35.25 cents per lb.
Class III milk was softer across the board Tuesday. June to September fell 11-16 cents while the 4th quarter lost 7-9 cents per cwt. The 2nd half of 2019 closed with an average price of $16.82. January through April declined 1-3 cents as well. Class IV dropped 2-7 cents June through September while the 4th quarter was unchanged. The 2nd half average Class IV settled with an average of $17.26 per cwt.