Product Markets Jump Along With Global Prices
Event 204 of the Global Dairy Trade took place on Tuesday resulting in a 4.9% gain in the index price. Butter led products higher after an 8.8% move higher. Butter closed at $2.16 3/4 per pound. Cheddar jumped 5.2% to a price of $1.58 per pound. Skim milk powder climbed 6.5% while whole milk powder added 5.1% to its price. Skim milk settled at 82 1/2 cents and whole milk finished at $1.36 1/2.
Other products to note:
- Anhydrous milk fat appreciated 2.2%
- Rennet casein increased 5.5%
- Butter milk powder and lactose were unchanged
CME product markets harnessed the excitement in the GDT event and made nice gains. Barrels, which fell 15 1/4 cents in the previous two weeks, climbed 5 3/4 cents Tuesday and closed at $1.27 1/2. Barrels traded 16 loads and found 18 bids. Butter Butter closed unchanged at $2.16 per pound and nonfat dry milk traded 2 1/4 cents higher to 69 cents even.
Class III milk futures were higher all day long. In the end, January was up 3 cents to $13.79 per cwt. February to June 2018 added 23 to 31 cents to close with a 1st half 2018 average of $13.84 per cwt. Second half prices were up 4 to 10 cents. 2018 is now offering $14.65 per cwt.