Barrel Prices Rolling Along
The USDA released the Dairy Products Sales Report on Wednesday. This report analyzes product pricing on a week-to-week basis. Last week butter averaged $2.35 per pound, down 2.8 cents from the week prior. Cheddar blocks gained 0.9 cents to $1.76 while barrels declined 1.3 cents to $1.73 per pound. Whey prices dropped 2.4 cents/lg to 36.4 cents per pound and nonfat dry milk lost a penny to average 78.7 cents per pound.
CME spot product markets continued to see strength in barrels but weakness in butter and nonfat dry milk. Barrels added a half cent to its price and settled Wednesday at $1.74 per pound. Blocks were unchanged at $1.76 per pound. Butter declined a penny while grade A nonfat dry milk also lost a penny. Dry milk closed at 72 1/4 cents per pound.
Class III milk markets moved a penny higher in November but 10 cents lower in December. 2018 prices closed down in every month. First half months lost 6 to 15 cents/cwt while second-half months moved 6 to 9 cents lower. The full 2018 year closed at an average price of $15.72/cwt. Class IV also weakened as November lost 8 cents and December dropped 16 cents. January and February were the only months to trade in 2018 and were down 11 and 24 cents, respectively.