No "Mayday" for Milk Markets
Mayday Mayday. While the dairy industry has been calling that for years, the dairy market did not operate under that kind of distress as we entered May Day 2019. On this first day of May, the CME spot trade would be characterized ultimately as calm and unmoved. In fact, as you analyze the five products that are traded in the CME spot trade, among all of them, only 21 total contracts were traded and none of them moved more than a penny butter remained unchanged. It had six loads moved from seller to buyer and finished at $2.26 and three quarters. Blocks were down a penny on a single load to finish at $1.66
and a quarter while barrels were unchanged after a handful of trades took place. Grade a nonfat dry milk was down three quarters of a cent and finished at $1.02 and three quarters and dry away was up three quarters of a cent on six loads moving back up to 34 and three quarters cents.
Class three markets removed only a few cents in either direction with summer months being up three to five cents and fall months being down two to three. The average price for the second half of the year now stands at $16.64. Unchanged from Tuesday's finish, Class four markets saw very little trade but in months that did, prices were lower. The average price in the second half of 2019 now stands at $17.20, down a penny from Tuesday.
For commodity Risk Management Group. This is Mike north, on know your markets.