Stability Finally Comes to Butter Market
Gains in the CME spot product trade were seen in butter and Cheddar blocks on Wednesday. The butter market moved 1 ¾ cents higher to $2.38 per pound and moves markets back to within five cents of the peak on May 16th. Today was also the first time in five sessions to see butter trade back higher after extreme volatility a week and a half ago.
Blocks closed at $1.66 ½, up 2 cents on the day. The barrel market dropped a penny to close at $1.46 ¼. Grade A nonfat dry milk fell ¼ cent to 92 ¾ cents.
Since April 1 the dry milk market has gained 12 ¾ cents and 7 ¾ cents of that move have come in May alone.
Class III markets improved on Wednesday and saw May up 2 cents and June through August up 12 to 14 cents. September through December improved 4 to 12 cents and places the average second half price at $17.05 per cwt, only 15 cents away from the recent peak of $17.20 on May 16.
January 2018 Class III futures dropped 2 cents while March finished unchanged.
Class IV second half average finished at $16.70 per cwt, down 9 cents from Tuesday.