Producer Optimism Unsupported by Market Movement
By Mike North, Commodity Risk Management
Over 700 dairy producers, suppliers and other dairy leaders from around the industry gathered in Madison, Wisc. on Wednesday to discuss the issues of the day. The feeling among the crowd was the best I’ve seen in recent months.
As we look at the milk markets however, support was not found to bolster such feelings. Milk prices in the Class III markets were down anywhere from 10 – 15₵ throughout 2017. Little Class IV action took place.
That came on the heels of a softer spot market trade where block cheese and barrel cheese both put in lower performances. Where at one time block cheese was as much as 3₵ lower in early trade and barrels were down 6 ¾ ₵ before recovering.
In the end block markets moved a penny and a quarter lower on three trades, barrels dropped 2 ¾ ₵ after five trades to finish at $1.69 ¼ and $1.61 respectively.
Grade A Nonfat powder finished a half cent higher and was the lone survivor after six trades moved it upwards to $1.03 and three quarters.
The butter market was quiet no one even ventured to show up with a bid or an offer so it finishes at $2.24.
Congrats to Mike for being elected as the Dairy Business Association president!
Listen to Mike daily on DairyLine Radio.