Milk Prices Witness Nice Upswing
Class III milk had a nice upswing in prices after falling during morning trading. We saw gains as high as 17 cents on March Class III milk, ending the day at $14.70/cwt. February was not as robust, finishing 1 cent higher to finish at $13.98.
The Global Dairy Trade Event 230 was Tuesday. We saw a 3rd month of positive price results. Prices were up 9/10 of a % (0.09%) overall with the Cheddar Index leading the way at 2.9% gain and Skim Milk Powder close behind at an increase in value of 2.8%. Butter was 1.2% stronger with Whole Milk powder up slightly at 3/10 of a % from two weeks prior. Lactose was the lone weak market. Falling 2.9% in value.
The CME Spot Products trade was mixed Tuesday. Butter unchanged on 8 trades to finish at $2.25/lb. Cheddar Blocks were up 1 ½ cents to $1.59 ½ /lb. Cheddar barrels didn’t follow blocks today. They lost a Quarter of a cent on 8 trades to finish at $1.53 1/4/ lb
Grade A Non Fat Dry Milk was unchanged on Tuesday to finish at $0.98 ¾ and Dry whey was up ¼ of a cent to $0.35 ½ / lb.
Dairy markets will be watching the USDA dairy production report that will be released on Wednesday. Bringing us January numbers for Production per cow and the number of cows leaving the herd.
For Commodity Risk Management Group this is Jenny Wackershauser on Know your Markets.