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Dairy Markets Continue to Heat Up in Chicago as 2021 Winds Down

On the Chicago Mercantile Exchange milk future again closed higher Thursday as cash markets and price optimism for 2022 continues. Class III milk saw January gain 17 cents to $20.18, February gained 38 to 20.83 and March jumped 34 cents to $20.79/cwt. The first half of 2022 sits at $20.43/cwt. Class IV milk continues to be the leader. January gained 20 to $21.50, February was up 6 cents to 21.41, and March up 4 to 21.41/cwt. The first half of 2021 has a class IV average of $21.30/cwt.

The CME spot dairy product trade saw great volume all week. On Thursday blocks up $0.03 at $1.98. Two sales were made at $1.9725 and $1.98. Barrels up $0.02 at $1.71. Eleven trades were made from $1.70 to $1.7150. Butter up $0.0150 at $2.4475. Four trades were made from $2.4350 to $2.45. Nonfat dry milk up $0.0075 at $1.6550. Three trades were made from $1.65 to $1.6550. Dry whey unchanged at $0.75.

The Price Index for November, at 103.5, is up 5.6 percent from the previous month but down 1.4 percent from November a year ago. The November all milk price of $20.80 per cwt is $1.10 higher than October but 30 cents lower than November 2020.

(T3, D1)
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