Trend of Rising Prices Ends
The trend of rising prices that carried markets higher into the last trading day of 2017 had some wind taken out of its sales on Tuesday when markets reopened. It started off with a lower Global Dairy Trade which found cheese prices dropping 2.1% falling to a price of $1.51 US. Butter prices remained unchanged. Whole and skim milk powder, however, did rise. In the end the weighted index price of all products traded at the Global Dairy Trade finished 2.2% higher.
On the heals of that trade came a softer CME spot trade where blocks and barrels each finished 1 1/2 cents lower. Blocks finished at $1.52 1/2. Barrels finished at $1.42 3/4. Grade A nonfat dry milk dropped 3/4 of a cent to 67 cents per pound. Butter remained unchanged at $2.20 3/4.
The softer spot trade created concern for those in the Class III market as the first half of 2018 dropped 12 cents to settle at $14.01 in its average. The second half of the year, however, caught some support and rose 4 cents. In the end the whole year average settled at $14.75, down just 4 cents. Class IV market saw little volume and remained unchanged.