Barrel Demand Stays Hot
After 36 loads of cheddar barrels traded on Monday, Tuesday followed up with another 19 loads trading hands as demand for barrels has been hot. Barrels saw no change in its price as it closed at $1.67 per pound. Cheddar blocks widened the barrel-to-block spread another 1 1/4 cents as blocks declined to $1.44 1/2 on three trades. Butter added 1 3/4 cents to its price to close at $2.20 3/4 per pound. Nonfat dry milk failed to trade but did drop another 1/4 cent to 68 cents.
Class III milk futures weakened on Friday. December 2017 declined a penny to $15.60 per cwt. First quarter 2018 dropped 2 to 6 cents while the second quarter was down 10 to 13 cents. The first half of 2018 is now offering producers $14.56 per cwt on average. The second half of 2018 is averaging $15.57 per cwt after dropping 1 to 9 cents.
Class IV milk futures had limited trade. December 2017 dropped 5 cents to $13.54 while January and June traded but were unchanged. No other months traded. The first half average for Class iV is $13.80 while the full year is at $14.39 per cwt.