Barrel, Block Spread Widens
The barrel to block spread once again widened. After 15 trades and 12 bids on Friday, barrels jumped 6 cents to $1.67 per pound. Blocks added a half cent after 3 trades took place, moving its price to $1.47 1/2 per pound. The barrel to block spread now stands at 19 1/2 cents.
Butter dropped 1 3/4 cents on 9 trades to $2.22 per pound and nonfat dry milk lost a 1 1/2 cents to close at 68 1/4 cents per pound.
For the week, trading volumes were plentiful in butter and cheese markets. Butter traded 60 loads in total this week at an average price of $2.21 1/2 per pound, up a penny from last week. The average price for Cheddar blocks dropped 9 1/2 cents this week to $1.49. All told, 34 trades took place on blocks while 56 loads moved in the barrel market. The average Cheddar barrel price was $1.59 1/4, up 5 1/2 cents. Grade A nonfat dry milk experienced a slow week as only three trades were made at an average price of 71 3/4 cents per pound.
December 2017 Class III milk futures continued its ascent this week as a dime came back to its price. December closes the week at $15.61 per cwt. 2018 prices finished lower on Friday. July declined 12 cents and September was down 13 cents. The remaining months were down 3 to 8 cents per cwt. Class IV was also softer as January dropped 15 cents, April was down 18 cents and June weakened 10 cents per cwt.