Butter Falls Beneath $2 For First Time Since 2016
Wednesday’s trade in the dairy markets wrapped up trade or this week. Dairy prices were supported once again by a strong product showing which had the barrel market 5.5 cents higher and blocks were also up 3.25 cents as well. Blocks traded once and settled out at $1.96 ¼ and barrels ended $2.24 ¾ respectively. Butter traded 1.25 cents lower and closed at $1.99 ¾ per lb. What makes today’s butter trade significant is that it represents the first time since November of 2016 that butter has traded beneath $2 per lb.
Grade A nonfat dry milk traded 9 loads and left 16 uncovered bids in the market but ended at $1.23 ¾ per lb., up ¾ of a cent on the day. Dry whey was left unchanged at 35 ¼ per lb. For the week, blocks and barrels added 8 and 3 cents respectively.
Class III futures contracts followed product higher gaining 23 cents in December, 14 in January and February foward ranged from 5 lower to 9 higher. Class IV markets added 1-6 cents on Wednesday. Dairy markets will be closed on both Thursday and Friday for the Thanksgiving holiday.
From all of us at Commodity Risk Management Group, we would like to wish your families a safe and happy Thanksgiving