Cheese Prices Flatten
After seven successive sessions of higher cheese prices, the markets flattened on Wednesday. Block cheese markets remained unchanged at $1.71 while barrels also remained unchanged at $1.48 ½. The spread between blocks and barrels remains at 22 ½ cents, marking the sixth time this spread has widened to this level in the last nine months.
Grade A nonfat dry milk rose ¾ of a cent to finish at 87 cents per pound. Butter dropped 1 ¼ cents to finish at $2.63 ¼.
The neutral product trade followed the neutral Global Dairy Auction trade mentioned in yesterday’s report, however the U.S. dollar has provided good news in relation to world markets. Since the beginning of the year the dollar index has fallen 800 basis points against the basket of currencies that it is compared to.
While the dollar news is good news for the long term, that did not translate to higher milk prices on Wednesday. Class III markets dropped a nickel with the August to December price average finishing at $16.87. Class IV markets rose slightly to $16.98.