Barrel Cheddar Leads For The First Time Since 2017
Barrel cheddar has now taken its turn leading the cheese complex higher in the CME spot session. Barrels rose 2 and ¼ cents eclipsing their may high of $1.65 and ¼ cents to finish at $1.67, the highest price witnessed since November 2017. Block cheddar took the day off falling 1/2 cents finishing at $1.65 and ½ cents after just three loads traded hands.
The more interesting thing is that barrels now have a penny and ½ cents premium over blocks, perhaps a sign that pizza consumption is on the rise as we head into the football season. Butter rose 2 cents to $2.38 and ¾ cents as seven loads moved from seller the buyer, while Grade A nonfat dropped a penny on offers alone to finish at 82 cents. Dry whey rose ¼ cent to 44 and ½ cents. Yet again, another record since it began trading in March.
The mix tone of the spot trade carried over into Class III milk futures where prices in nearby contracts held a premium over those in deferred. The September contract alone rose 11 cents while the balance of the year was largely unchanged. The average from now through December stands at $15.94, up 2 cents from Monday. Class IV markets remained unchanged.