Milk Prices Mix and Mingle
The CME spot product market traded in a mixed tone on Tuesday. Grade A nonfat dry milk rose 2 cents/lb following 6 trades. Cheddar barrels inched ¾ of a cent higher to a value of $1.82/lb while blocks were unchanged at $1.80 despite two loads moving hands. Butter softened ¾ of a cent to $1.745/lb. Whey lost 1.5 cents on offers to a settlement of $0.645/lb.
CME trade followed a lower GDT index earlier in the day. The overall index lost 0.7% with butter and cheddar taking the biggest hits. Butter weakened 12.1% to $2.22/lb when converted to 80% fat. Cheddar declined 4.5% and printed a closing value of $1.94/lb. Lactose and anhydrous milk fat were also products that headed south in price on today’s trading event. Butter milk powder jumped 14.4% while skim milk powder added 2.0% ($1.555/lb) and whole milk powder was up 0.7% ($1.865/lb).
Class III milk prices ranged anywhere from even to 10 cents higher at the close following lower trade all day. Class IV values traded anywhere from 5 cents lower to 5 cents higher. Grain values continue to creep higher. Corn and soybeans added 17-18 cents/bu. Soybean meal also traded $2-$7/ton stronger in 2021 and 2022. The wheat complex rallied 5-12 cents/bu as well.
