Barrel Cheese Inching Its Way To The All-Time High
The dairy markets finished off this week in the only way that seemed fit – higher! Cheddar blocks traded on the CME dairy auction closed 3 and ¾ cents higher to $2.32 and ½ cents per lb. following two bids. Blocks headed south on Friday losing 2 cents and closing at $2.15 and ½ cents per lb. Six loads moved from seller to buyer.
Butter softened a quarter cent and ended at $2.08 cents even. Grade A nonfat dry milk added 1 and ¾ cents per lb. after six loads changed hands. Dry whey finished off the week with solid volume as 15 loads moved from seller to buyer today whereas 48 moved for the week.
As the market continues to deal with short inventories of barrel cheese in the United States, the market keeps trucking higher. Since September 2019, barrel cheese has now jumped 71 and ¼ cents per lb. and resides at $2.32 and ½ cents per lb., now just 16 and ½ cents from it’s all-time high of $2.49 per lb.
Class III milk markets followed the barrel market higher on Friday. November milk added 4 cents while December jumped 20 and January was up 22 cents per cwt. The remainder of 2020 traded 2-5 cents higher. The first half of 2020 is now offering producers $17.20 per cwt. Class IV put together modest gains as well.