Opportunity Returns to the Markets
Government programs drive buyers to the cash cheese and butter trade and we are seeing limit moves on cheese and both Class III and Class IV Milk.
The CME spot trade leapfrogged higher once again. Butter jumped 13 ½ cents higher to 1.64 ½ with 15 loads trading, Cheddar Blocks gained 17 ¼ cents to 1.75/lb with 1 trade and 4 bids, Cheddar barrels gained 16 ¾ to $1.66 3/4/lb but no loads traded, 3 bids and no offers.
Grade A Non Fat Dry Milk gained 4 cents to $0.92/lb with 1 load trading 3 bids and no offers. And Dry whey was our outlier, falling a penny to $0.39/lb with 6 loads moving, 1 bid and 1 offer.
Cash settled cheese will trade Friday with a Historic double expanded limits of $0.30/lb or the equivalent of $3/cwt milk. Returning us to to levels we traded prior to COVID 19.
Class III Milk saw May gain 40 cents to $12.48, June – September moved the 75 cent limit higher with June finishing at 16.10/cwt. A nearly $6 move higher since it’s lows. July finished at 16.80. Our second half average is at 17.21/cwt.
Class IV milk also moved limit higher in several months. May was up 12 to 10.62, June to 13.05, and July finished at 14.14/cwt. The second half average for Class IV milk sits at 14.85/cwt.