October 16, 2019

Block, Barrel Spread Now Just 2 Cents

 |  By: Know Your Market

Butter was the shining star of Wednesday’s CME spot product trade. 21 loads moved and helped butter move 2 ¼ cents higher to $2.14 ¼. Cheddar fell slightly but holds its average at $2.03 per lb. with blocks moving 1 load, a penny and half lower at $2.04 and barrels moving 4 loads half a penny lower at $2.02. Narrowing the block/barrel spread to 2 cents. 

Grade A nonfat dry milk was unchanged Wednesday at $1.16 ¾ with 5 loads moving, and Dry whey saw an impressive 21 loads change hands but was a quarter of a cent softer at $0.30 ½ per lb. 

Class III milk continued its move higher. October gained 2 cents to $18.62, November was unchanged at $18.68, and December gained 2 to 18.06/cwt. Jan – March of 2020 saw 3-4 gains to average at $17.00 per cwt. 

Class IV milk saw October gain 8 cents to $16.45, November was unchanged at $16.82, and December fell 4 cents to $16.76 per cwt.

Grain and feed markets were quiet again and took a small step lower. December corn fell 1 ½ cents to $3.91 ¾, November soybeans fell 6 cents to $9.28, and December soybean meal fell $3.00 to $304.80 per ton.