September 14, 2020

Block And Barrel Spread Sets New Record

 |  By: Know Your Market

Futures continue to struggle to follow CME spot cheese as we set a record Block/Barrel spread. A new week brings similar results, The CME spot trade had Cheddar Blocks moving 5 cents higher on 4 trades to $2.21 1/2 and Barrels gained half a penny on 4 trades to 1.60/lb. Our Block/Barrels spread though is at 61 ½ cents. A new high – surpassing 59 ¾ spread we saw in Mid July.  

Butter slid a penny higher with 7 loads moving to $1.49/lb. Grade A Non Faty Dry milk held unchanged at $1.04/lb with no loads trading, Dry whey also failed to move a load but fell ¾ cent to $0.34 3/4/lb.

Class III milk started the day strong and was up early in the day but failed to hold on as sellers showed up to the party. September fell 7 cents to 16.71, October gained 2 to 19.23, and November fell 4 cents to 17.65/cwt. 

Class IV was mostly unchanged. September held at 12.68, October fell 1 to 13.49, and November fell 2 cents to 13.93/cwt. 

The grain and feed markets was quieter – Soybeans touched over 10.00 in November to retreat back to $9.99 ½, December corn gained a penny to 3.69 ½, and Soybean meal fell $2.20 to 316.20/ton.