Milk Markets Soften On Cheese Price Dive
The cheese market giveth and the cheese market taketh away. Cheddar blocks gave back 6 ¾ cents on Tuesday as sellers came to the markets and moved 8 loads with price settling at $2.17per lb. Cheddar barrels failed to move any loads and had 5 offers with no bids, falling 5 cents to $1.89 per lb.
Butter also slid 5 ¾ cents to $2.15 per lb. with 3 loads moving. Grade A nonfat dry milk was our only bright spot. Gaining a penny and a half to $1.07 per lb. with 8 loads trading. Dry whey was unchanged at $0.39 ¾ per lb. with no loads moving, 5 bids and 1 offer.
Much of the move came following this morning’s Global Dairy Trade event that showed an overall gain of 2% from two weeks prior, but cheddar failed to gain enough to support U.S. recent price increases. Gaining 4/10 of a percent to the equivalent of $1.74 per lb. Butter gained 2.7% to $1.83, anhydrous milk fat gained 6/10 of a percent to $2.28.
Skimmed milk powder was up 3.4% to $1.26 per lb., whole milk powder gained 1.9% to $1.42, and lactose finished our positive moves, up 5.6% to $0.35 per lb.
The softness in CME spot trade pushed Class III milk down significantly. October gave back much of its gains, down limit move of 75 cents to $18.99 per cwt. September only fell 5 to $18.29, and November lost 58 cents to $18.15 per cwt. 2020 markets also sharply lower, Jan- March falling 25-34 cents to average at $16.53 per cwt.
Class IV milk was weaker as well. September and October were unchanged at $16.33 and $16.48, but November fell 24 cents to $16.55 per cwt.