Product Markets Move Higher as GDT Drops
Event 206 of the Global Dairy Trade was released on Tuesday and resulted in the index falling a half percent, the first drop we have witnessed in 2018. 152 bidders showed up as 20,256 metric tons of product was sold.
Skim milk powder led products lower with a 3% reduction. Skim closed at 83 cents per pound. Whole milk powder was up 0.3% to $1.47 1/4. Cheddar fell 1.3% to $1.67 per pound while anhydrous milk fat declined 1.9%. Butter added 1.1% and finished at $2.36 per pound. Butter milk powder and lactose were unchanged while rennet casein added 0.7%.
CME product markets were mainly higher on Tuesday with butter jumping 4 cents to $2.14 per pound. Blocks added a half cent to $1.54 1/2 despite no trades. Barrels gained a quarter cent with three loads moving hands. Barrels settled at $1.48 1/4. Grade A nonfat dry milk was the lone losing product as it fell to 68 1/4 cents per pound, down 2 1/4 for the day.
Class III milk futures reacted in a higher fashion. February dropped a penny to $13.48 per cwt while March through June added 5 to 11 cents. The second half increased 5 to 9 cents per cwt. The March through December 2018 average settled at $15.25 per cwt. Class IV markets saw just August and December trade once. August fell 30 cents and December dropped 37 cents.