Cheese, Class III Milk Take Jumps
Barrel cheese led the way on the CME spot session on Thursday with 22 loads trading hands and prices moving 6 ¾ cents higher before offers moved the prices back a penny. The final price settled at $1.52, up 5 ¾ cents. Blocks also moved up 5 ½ cents higher to $1.72.
That leaves the block and barrel spread at 20 cents. Looking back over the history of the CME spot trade only 7 times in history has the spread been this wide. The last time we saw it was in February ahead of the precipitous price fall that defined the subsequent six weeks that followed.
Grade A nonfat dry milk also had an active day, up ¼ cent finishing at 93 cents per pound. Butter, which has been the focal point of market strength in recent weeks, did not trade and remains unchanged at $2.38.
Class III markets, which began the day higher, extended their gains after the higher cheese trade and in the end the average price of all months from now through December was $17.02, up 27 cents.
Class IV markets saw greater activity than normal with May through October markets all seeing trades.