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Milk Markets Part Ways Following GDT Auction

March 3, 2020

Class II and Class IV had a mismatch day after Global Dairy Trade event 255 kicked off the morning. Overall Global Dairy trade index fell 1.2%, but saw some notable trends higher. Butter index was up 1%, lactose was up 5.3% and rennet casein was up ½ a percent.  Cheddar however was 4.7% below prior trade 2 weeks ago following a huge move higher during the previous event.


Whole milk powder was down slightly, falling ½ of a percent, skim milk powder was down 3.2%. The CME spot trade had a similar mixed feel. Butter continued to trade higher as we turn the page to March – up 3 cents to $1.86 per lb., nonfat dry milk also gained 3 cents to $1.14 per lb. – supporting a strong Class IV move higher on Tuesday.

Cheddar couldn’t keep pace – blocks fell half a cent to $1.76 ¼, and barrels fell 4 ¾ to $1.53 ¾. Dry whey was unchanged at $0.33 ½ per lb.


Class IV milk surged higher - March gained 13 to $15.58, April gained 11 to $15.65 and May gained 14 to $15.88. November saw the biggest gain in the futures months gaining 40 cents to $16.93.


Class III however saw March fall 3 to $16.34, April took the biggest move lower – losing 20 to $16.08 and May fell 10 to $16.28 per cwt.


milkbusiness.com

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