Milk Prices Off To The Races
Its Derby weekend and Class III milk was off to the races on Friday. The CME spot product trade started the run with cheese being a busy market. Cheddar Blocks traded 2 cents higher on 22 loads trading and finished the week at $1.67 ½ /lb and Cheddar Barrels moved 8 loads Friday to gain 3 ¼ cent to $1.66 ¼. Our block/barrel spread tightening to only 1 ¼ cent.
Butter didn’t have as much interest, no loads trading hands and losing a quarter of a cent to finish the week at $2.27 even. Only one load of Grade A Nonfat Dry milk traded gaining 2 ¼ cent to $1.05 ¼ and Dry Whey was unchanged at $0.34 ¾ with no trading activity.
Class III milk liked what it saw in the CME spot product trade and accelerated off of early gains to see gains of 11-27 cents in all of the months of 2019. May was up 20 cents to 16.37, June up 23 to 16.58 and Third quarter has an average at 17.02 and Quarter 4 16.95/cwt.
Class IV milk also had nice gains in the second half of the year. May fell 1 cent to 16.27, June finished at 16.68 and the second half is averaging $17.28/cwt.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.