Milk Prices Give Back Gains
Global Dairy Trade event 236 Tuesday saw our fist decline in overall value since November 2018. The overall index fell 1.2% driven by a 3.2% lower price in Butter, a drop of 2.1% on Whole Milk Powder, and Anhydrous milk fat fell 1.4%. Cheddar Cheese index however, rose 15.2%. This is the largest jump in cheese value in the GDT since February of 2015. Skim milk powder was half of a percentage point higher to $1.22/lb, and Rennet Casein rose 5.1% .
The CME spot product trade had a similarly mixed day. Butter lost 1 ¼ cents to $2.32 ¾, Cheddar Blocks gained ¾ of a cent to $1.68 /lb but Cheddar barrels fell 2 ¼ cents to $1.60 ¼.
Grade A Non Fat Dry Milk gain a quarter of a cent to $1.04 ¾ and Dry whey was up 2 cents to $0.34/lb even.
Class III milk gave back some of its gains from late last week. May was even at $16.29/cwt, but June fell 7 cents to $16.44. The second half months lost 12-17 cents to fall off our $17 average to $16.88. $17 continues to be a strong resistance to rallying milk prices.
Class IV milk was unchanged in May to 16.28, July fell 10 cents ot 16.94 and August fell 14 cents to $17.08/cwt.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.