Milk Prices Limit Higher Across The Board
Milk prices across the board were limit higher in both Class III and Class IV.
News of a joint proposal submitted to the USDA by the International Dairy Food Association and the National Milk Producers Federation boosted prices. The market currently has supply outpacing demand at an estimated 10% with seasonal peaks of milk production currently upon us. The pitch made was enough to rally milk futures on Monday despite softer product trade and Tuesday with small changes in product. Butter added a penny to $1.26 and a half while butter futures were limit up. Cheddar blocks settled unchanged at $1.12 and three-quarters while barrels gained a penny to $1.10 per lb. No trades took place in either market.
Grade A non-fat dry milk returned to 90 cents per lb. after trading three times and 3 and three-quarter cents higher. Dry whey ended at 33 cents per lb. for the 14th trading session in a row. Milk futures weren’t paying attention as months rocketed 75 cents higher. At the close, second half Class III milk futures average ended at $15.80 per cwt.