May 5, 2019

Milk Prices Off To The Races

 |  By: Know Your Market

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.