Another Tough Week for Futures Markets
CME spot product markets on Friday saw support in cheese prices and further weakness in butter. Block and barrel cheese each traded 3 cents higher, Block cheese settled at $1.54 per pound while barrels closed at $1.52 on Friday.
For the week blocks traded 20 loads at an average price of $1.53 1/4 per pound, 17 cents below last week's average price. Barrels followed a similar path as 21 loads traded with an average price of $1.50, 16 1/4 cents below the prior week.
Butter declined 7 1/4 cents on Friday and finished at $2.50 3/4. The close for butter is the lowest it has seen since June 7th earlier this year. There were 28 trades at an average price of $2.56 1/2, 4 5/8 cents lower than a week ago.
Grade A nonfat dry milk was unchanged at 86 1/4 cents and traded 7 times this week at an 85 1/2 cent average.
Class III milk futures continued their decent to close out the week as 2017 prices finished 7 to 14 cents lower. The September through December milk average is $16.13 per cwt. A week ago the same average was trading at $16.52. Prices in 2018 were softer as well. The first half of 2018 was 10 to 16 cents weaker while the 3rd quarter was down 7 to 13 cents per cwt. The 4th quarter of 2018 did not trade.
Class IV markets moved 14 cents lower in November and 20 cents lower in December First half 2018 declined 2 to 9 cents.