Optimism Returns to Dairy Markets
Optimism and volume both returned to the CME spot trade where all four products traded in the event traded at higher prices. Blocks rose 2.5 cents to $1.75 from the active presence of bidders. Barrels rose 4 cents to $1.73 per pound closing the gap with blocks to 2 cents, four loads traded hands. Butter rose 2.5 cents, traded 10 loads, and finished at $2.355 per pound. Grade A nonfat dry milk was up a quarter cent and traded half of its week’s volume, 11 loads and finished at a final price of 82.75 cents per pound.
Whey futures contracts got caught up in the spirit of all this positive trade by breaking the downward cycle that’s been in place the last week and rebounding a quarter to a half a cent.
Class III milk prices responded favorably to this by gaining 15-20 cents in the months from now through March. The fourth quarter average finished at $16.27 per CWT up 20 cents. The first half of 2018 finished at $15.71 per CWT up 9 cents from Tuesdays trade.
As you would expect, Class IV markets saw little volume in moved to higher prices as well. Fourth quarter average now stands at $15.05 per CWT.