Class III, Cheese Prices Stumble
It was on May 13, 2016 when the block cheese market established a low of $1.22 per pound and wouldn’t look back. Well, at least not until lately. After breaching the October low of $1.5175 which was taken out on February 22, the block market has continue to move lower. On Thursday, it took out the $1.40 per pound level moving to $1.3975 per pound, a price not seen since June 2 of last year.
Barrels followed suit and markets dropped to a $1.40 per pound, down a nickel. Butter markets were also lower. The final price was $2.1625 per pound. That price had it down 3.5₵ and continues onward between the prices of $2.10 and $2.20, a range that has largely confined the last month of trade. Grade A nonfat dry milk was unchanged at 81₵ on Thursday’s trade.
Class III markets didn’t take this news well. Prices dropped 20₵ in nearby contracts, with the balance of the year falling single digits as we got into the second half. Class IV markets remained stronger, with many months up 5₵-15₵.
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