USDA announced the October Class I base price to be $19.47,
an increase of $0.57/cwt. from September. The current ‘average of’ formula
resulted in the price being $0.57/cwt. higher than the previous ‘higher of’
formula.
The overall price index at this week’s Global Dairy Trade
event surged 4.6%, its second consecutive increase. China resumed buying given
the combination of relative low GDT prices and dwindling dairy product
stocks in China. Skim milk powder jumped 5.4% to $1.0886/lb., and whole milk
powder followed suit increasing 4.6% to $1.2696. Butter gained 3.8% to $2.1423.
Only cheese slumped, down 1.7% to $1.8343.