Class III Markets Take a 4th Quarter Dive
Sellers showed up once again in the CME spot auction trade for cheese on Tuesday. Cheddar blocks lost another 5.75 cents following 3 trades, 2 uncovered bids and 2 offers. Barrels moved 2 loads and fell a half cent to $1.6125 per lb. Butter softened 12.25 cents to $2.1425 on a single trade and unfilled offer. Dry whey also declined 1.25 cents to 35.5 per lb. while Grade A nonfat dry milk was the lone product to move higher adding 1.25 cents following 9 loads moving from seller to buyer.
Class III milk markets reacted to the selloff in product trade as you would expect. 4th Quarter 2019 prices dropped 20-24 cents on Tuesday leaving that quarter’s average price at $17.85 per cwt. First half 2020 results ranged from 5 to 14 cents lower. The first half 2020 market is offering producers $16.71 per cwt. Class IV saw very little change with October 7 cents higher, January down 6, and March 8 cents weaker. Class IV first half average stands at $17.25 per cwt.
Grain prices on Tuesday watched corn add 1.5 cents per bu. to $3.7475, soybeans traded 1.75 cents higher to $8.94, Kansas City and Chicago wheat were down 1.5 cents, while Minneapolis closed 7.25 cents higher.