Today’s Global Dairy Trade event 302 concluded with the GDT Price Index 4.2% higher. Butter was 5.1% higher to $2.96/lb (US equivalent adjusted to 80% fat). Cheddar Cheese jumped 3.5% to $2.67/lb on aggregate. Whole Milk Powder was up 4.1% to $2.04/lb. Skim Milk Powder surged 6.0% to $1.95/lb.
In comparison to Tuesday’s CME spot dairy auction, cheese remains a discount at $1.97/lb to the rest of world. US Whey is premium at $0.8125/lb to New Zealand and the European Union. US NFDM/skim are around parity at $1.90/lb with the rest of the world. US spot butter settled at $2.86/lb which remains slightly discounted to the rest of the world, but within the realm of the normal historical spread.
Class III milk futures were lower today as nearby futures remain premium to current CME spot prices. All eyes will be on the spot market to see if this premium is justified. Only time will tell. February was even at $20.82/cwt. March fell 24 cents to $22.68/cwt. April eased 24 cents to $23.01/cwt. Class IV prices were also mixed with March milk adding 13 cents to $24.98/cwt.
The grain market trended lower Tuesday with news of Russia deescalating at least for the time being. The market continues to monitor this story diligently. March corn slid 20 cents to $6.3575/bushel. March soybeans lost 20.75 cents to $15.4925/bushel. March soybean meal dropped $10/ton to $438.40/ton. This represents almost a $40/ton retracement from the contract high of $477.90/ton on February 10th. March Chicago Wheat tumbled 19.50 cents to $7.7975/bushel.
The livestock sector prices settled higher. April live cattle gained 55 cents to $146.90/cwt. March feeder cattle rallied $1.85 to $168.72/cwt. April lean hogs jumped $1.82 to $104.15/cwt. March crude oil prices were lively, dropping $3.50 to $91.96/barrel.
