Milk Markets Tumble on Bearish Milk Production Report
The dairy complex received a lot of information during trade on Tuesday. Not much of it supported higher trade in the Class III on Class IV market. First out was Global Dairy Trade event 258 which saw the overall index fall 4.2%. Products to decline included anhydrous milk fat, butter dropped 3.6% to $1.82 per lb., skim milk powder softened 4.9% and whole milk powder was down 3.9%. The cheddar index increased 1.9% and lactose jumped 12%. Cheddar closed the event at $2.03 per lb.
The CME spot auction finished unchanged for blocks and barrels at $1.0075 and $1.0125 per lb. respectively. Butter declined 1.5 cents to $1.185. Nonfat dry milk closed a half cent lower and whey fell a half cent to 38.5.
Class III markets settled out much lower losing 55 cents in May, limit down in June through August, 63 softer in September and a quarter lower in the fourth quarter. Class IV was down 11-36 cents as well.
The March milk production report was released by USDA with overall production at 19.26 billion, up 2.2% year over year. Cow numbers were printed at 9.38 million, 47,000 more than a year ago,