Price Erosion Continues for CME Spot Product Market
The price erosion in the CME spot product markets dropped 6 and ¼ cents to $1.50 and ½ cents following 1 trade, 1 bid and 3 offers. Barrel cheese declined another 3 and ¼ cents to $1.29 and ¼ cents. There were 22 trades that took place with 6 bids left hanging. Butter settled at $2.28 and ¾ cents per lb., down 2 and ¼ cents on the day. Dry why fell ½ cents to 39 cents per lb. while Grade A nonfat dry milk added 1 and ½ cents and closed at 76 and ¾ cents.
Class III milk futures traded lower once again Wednesday. June was unchanged at $15.32 cents per cwt. while July settled 12 softer at $15.00. August through October ranged from 2-6 cents lower. November and December were both unchanged. Class IV milk dropped 1-10 cents starting in June extending out through April of 2019.
Event 214 of the Global Dairy Trade was released early Tuesday and finished with the overall index down 1.2%. Products that moved higher included butter, up .8% at $2.48 and ¼ cents per lb. Other products to fall included anhydrous, milk fat and rennet casein. Butter, milk powder and sweet whey powder were not offered at this event.