Active Trade Moves Markets Lower
As we monitor the daily activities of the CME spot session, we begin each day wondering which of the four markets will be the volume leader. Over the course of the last week, that role has been shared by Grade A nonfat dry milk, butter and on Wednesday it was barrels.
After 24 loads traded hands prices dropped 1.5₵ to $1.40 per pound. Its counterpart, the block market, did not change and did not trade. A single bid remained below the market.
The grade A nonfat dry milk market was also unchanged. Two loads traded hands and the final price was 85.25₵.
Moving our eyes to the Class III markets we saw little activity there. Markets remained lower all day long. The final average price from now through December was down 5₵ per cwt to $16.06 per cwt.
As has become usual, the Class IV market did not trade.
Also noteworthy on Wednesday was USDA’s announcement of class and component prices for the month of April. Class II prices came out at $14.81 per cwt, the Class III price was $15.22 per cwt and Class IV was announced at $14.01 per cwt.