June 24, 2017

Block, Barrel Price Spread Narrows

 |  By: Know Your Market

Friday was a day of further convergence in the block and barrel cheese market. Blocks finished at $1.54 after dropping a half cent on seven loads. Barrel cheese was up 3 cents to a final price of $1.37, with 21 loads changing hands representing a third of this week's volume. The spread between blocks and barrels is now at 17 cents.

Grade A nonfat dry milk was up 1/2 cent to finish at 84 3/4 and butter was up 1/2 cent as well, finishing at $2.59 which, coincidentally, was this week's average butter price.

This week's average in other product categories are as follows:

  • Block cheese: $1.56.80
  • Barrel cheese: $1.35.10
  • Grade A nonfat dry milk: just under 87 cents.

Following the midweek selloff, whey prices were able to rebound to finish near last week's settlement. At present, Q3 prices are averaging near 43 1/2 cents, with Q4 at 39 1/2 cents.

Turning to Class III markets, prices rose to close the week. Class III markets were up an average of 12 cents from now through the end of the year, with a final price of $16.90 per cwt. Class IV markets finished the week with an average price of $16.66 from now through the end of December.