Know Your Market
October 6, 2020
A move higher in the Global Dairy Trade started Tuesday. The Index moved 2.2% higher than 2 weeks prior with product results mixed. Butter rose 8.4%, Cheddar was mostly unchanged but showed a 4/10 of a percent increase, Whole Milk powder was up 1.7%, but Skim Milk powder softened just shy of 1 % and Lactose was down 7.4% over the previous trade 2 weeks ago.
The CME spot trade saw Cheddar again move higher. Blocks gained 1 ¼ cents to $2.65/lb with 1 load moving, Barrels gained a penny to $2 even but didn’t see a trade with 1 bid. The block barrel spread sits at 65 cents and our cheese average is at 2.32/lb.
Butter continues to struggle, falling ¾ of a cent to $1.47 ¼ with 6 trades. Grade a Non Fat Dry milk had nice volume. 20 loads traded but the priced held unchanged at 1.13/lb. Dry Whey fell a quarter of a cent to $0.39 ½ with no trades, 1 bid and 4 offers.
Class III milk failed to follow cheese on Tuesday. October finished down 9 cents to 20.54, November fell 12 to 19.59 and Dec fell 6 to 17.91. 2021 however gained 1-9 higher outside of January.
Class IV milk also slid. October down 15 cents to 13.55, November fell 12 to 14.26, and December gave back 4 cents to 14.54/cwt
milkbusiness.com
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