Whey Prices Decline, Milk Prices Follow
By Matt Tranel, Commodity Risk Management Group
The CME spot dairy products session on Monday started the week with little change. Three of the four products finished the session unchanged, with butter being the lone exception. Butter declined 1.5₵ to a price of $2.1475 on four trades and one bid and offer left outstanding. Cheddar blocks and barrels were a ghost town on Monday, as no trade bids or offers showed up.
Both markets finished unchanged at a $1.48 on blocks while barrels settled at $1.4375.
Grade A nonfat dry milk was unchanged at 80.5₵ although there were 12 bids and three offers.
Dry whey markets were again the story and reason behind weakness in the Class III market. Whey markets dropped 0.5₵ in March, 1.5₵ in the second quarter and 0.75₵ in the August-October time frame. After Monday’s trade the average April - December whey price fell to 41.5₵ an 8.5₵ move lower since the peak on February 9.
As a result, Class III prices slipped 4-7₵ in the March - May and September – December timeframes. June – August saw the biggest hits with June being down 17₵, July down 10₵ and August down 19₵. After Monday’s trade the average April – December price was $16.45 per CWT.
Class IV markets declined 5-11₵ in the second quarter, while August lost 8₵ and September was down 20₵.
Listen to markets daily on Dairyline Radio.