Block, Barrel Spread Stays Near 16 Cents
On Tuesday it was the barrel market’s turn to make a trade on the new electronic platform. Barrels remained unchanged and finished at $1.36 ¾. Block cheese saw no trading action and prices also remained unchanged at $1.52 ½.
In the butter and nonfat dry milk markets it was a story of handfuls and quarters. Each traded five loads and moved a quarter-cent off of yesterday’s settlement. Butter was up ¼ to finish at $2.62 ½ and grade A nonfat dry milk was down a ¼-cent to finish at 84 ¼ cents.
While domestic nonfat markets are caught at near two-month lows, global skim milk powder markets are caught between warring fundamentals. On one hand large intervention stocks held by European governments threaten to make their way back into the marketplace. On the other hand skim milk powder is taking a greater role in Chinese imports as the volume of Chinese whole milk powder imports has dropped in recent months. The conflict between global information only causes domestic markets to focus on near record inventories.
In Class III trading, markets finished softer at the end of the day. The price average for markets trading from now through the end of the year finished at $16.76, down a nickel. Class IV markets did not trade and remained at $16.91 for that average.