U.S. Products Prices Remain Competitive
When analyzing volume in the CME spot trade. Grade A nonfat dry milk takes the top of the leaderboard this week trading a total of 13 loads, eight of which came in Tuesday's trade. It finished a half cent higher at 69.75 cents per pound. Dry whey also posted a trade today, one load caused the market to move a quarter cent higher to finish at 29 cents. No one even bothered to show up for butter or cheese in Tuesday's spot session. Butter, blocks and barrels all remain unchanged without a single bid or offer posted. Final prices were $2.18 for butter, $1.545 for blocks and $1.50 for barrels.
Class III prices took their cue from the quiet product trade to barely move at all themselves. Nearby contracts posted the biggest gains, with May June and July up just under a nickel. The balance of the year was either unchanged, up a penny or down a penny. In the end, the average price for the year went up one cent to $15.23 per cwt.
Class IV markets, as per usual, saw little volume to finish unchanged in its average for the balance of the year with a final price of $14.16 per cwt.
As the price of both milk and products continues to remain quiet, one thing to note is that the U.S. remains competitive in nearly every product space. Skim milk powder, Cheddar, butter, whey, WPC 34 and lactose all find themselves at prices lower than other world competitors. Long term, this is good news.