Market News

A good day in the dairy markets

Another day of nice gains in the dairy markets on the Chicago Mercantile Exchange on Tuesday. A 10.9 percent increase in the overall index at the Global Dairy Trade auction on Tuesday got the session off on the right foot. Cash cheese barrels gained 6 cents and blocks added 2 cents on sales. Butter increased a penny, nonfat dry milk raised 4.25 cents and Class III futures had double-digit increases from September through next May.

 

The overall index was up 10.9 percent at the Global Dairy Trade auction on Tuesday. After 10 consecutive declines, the Index has now increased more than 25 percent in the last two auctions. This is the highest the Index has been since June.

Of the eight products traded, only lactose was lower down 4 percent from the last sale. Cheddar cheese was 4.7 percent higher, rennet casein increased 6.3 percent, butter was 8.1 percent higher, anhydrous milk fat and skim milk powder were each 11.7 percent above the last auction. Whole milk powder increased 12.1 percent and butter milk powder jumped 30 percent.

Volume was 35,865 metric tons down slightly from the August 18^th sale. Fonterra had announced just prior to the last auction that it was going to reduce the amount of product offered.