Milk Markets Take A Tumble
Large volumes for nonfat dry milk appeared once more in Wednesday's CME spot trade. Twenty-seven loads were exchanged from seller to buyer before it finished unchanged at 82 cents. This trend has been in place since the European Commission put forward its most recent tender for skim milk powder in an auction last week. Buyers there were aggressive and chasing after powder inventories both old and new. Since then the CME spot trade has been much more robust than seen in previous months. Powder’s unchanged finish was an echo of the butter trade which finished unchanged. After 14 loads traded hands it finishes again at $2.375.
Cheese was a different story. Blocks fell a penny and three quarters after a single load traded, it finishes at $1.61. Barrels are down another half cent to $1.4825, nine loads traded there. Dry whey dropped three quarters of a cent as well. It finishes at 30.75 cents, no trades took place.
The softer product trade led to a lower Class III three result. At the end of the session, the average from now through December finished at $15.84 down 7 cents from Tuesday's finish. Class IV markets finished lower as well. It's average from now through the end of the year rests at $15.93, down 3 cents.