Markets Soften on Global Dairy Trade
It was just two weeks ago when Cheddar values on the global dairy trade dropped 4.9%. On that same day, CME spot prices for cheese rose dramatically. On Tuesday’s GDT trade, Cheddar rebounded 1.4%, but in the same manner as the last event, CME spot trade moved in the opposite direction.
Blocks fell 3 cents to $1.725 per pound after five loads traded hands. Barrels fell 1.75 cents to $1.64 per pound, after the same amount traded. This brings the spread to 8.5 cents, the tightest that it’s been since back in early May. Butter markets remained unchanged no trades took place the final price was $2.67 per pound. Grade A Dry Milk broke the threshold of 85 cents to finish at 84.75 cents, down 0.25 cents on three loads.
Class III markets responded negatively with September, October and November contracts dropping more than 30 cents. The average price from now until the end of December finishes at $16.80 per cwt, down 26 cents. Light trading in Class IV moved prices lower, as well, to a final price of $16.72 per cwt.