Barrels Drop, Class III Jumps
Cheddar barrels contained the majority of the trading activity on Monday. In total, 16 loads traded hands as barrels closed at $1.70 per pound, down 5 1/4 cents on the day. Blocks gained a quarter cent to $1.71 1/4. After today's close, blocks have regained premium pricing to the barrel market after barrels had help up to a 10 cent premium on blocks just last week. Butter dropped a half cent on 2 trades to $2.25 while grade A nonfat dry milk added 1 1/4 cents to finish at 73 1/2.
Class III milk futures on Monday shook off the weakness in the barrel market to close 4 cents higher in November and 10 cents higher in December. First quarter 2018 gained 8 to 12 cents while 2nd quarter prices added 1 to 4 cents. Monday's first half average settled at $15.07 per cwt. Second half prices closed even to down 6 cents bringing the 2018 full year average to $15.45.
Class IV milk had November up 7 cents and December unchanged. January 2018 jumped 19 cents to $13.90 and all other months in 2018 were unchanged. The Class IV full year average now stands at $14.10 per cwt.