The U.S. markets continue to accelerate; Class III was up 41 cents for March to $22.20. The backwardation is increasing with September at $18.99 (up 13 cents); a difference of $3.21. Class IV was also higher but not as much as Class III. March futures for Class IV was up 8 cents to $23.28, still at a premium to Class III and whilst it’s also in backwardation the difference between March and September for Class IV is only $2.54.
Nevertheless, all milk remains in backwardation which is attractive for buyers in the back months.