March 7, 2019

Blocks and Barrels Hold Class III Prices Down

 |  By: Know Your Market

We are getting closer to catching up on our backlog of USDA data. The January Cold Storage report was released Wednesday. Butter stocks were up 18% from December, but were 7 percent below levels of a year ago. The increase over December stocks is below the normal seasonal gains we see coming out of the holiday season.

Natural Cheese stocks were up 1% from December levels and grew 6% from January of 2018.

Cheese set the market trend today. Cheddar Blocks down 2 ¾ cents on 1 trade to finish at $1.55 ¼ with Cheddar barrels following suit and losing 2 ¼ cents on 8 trades to $1.42 ¾ per pound. 

Butter and dairy powders were all unchanged Wednesday. Ending the day with butter at 2.25 ¾, Non Fat Dry Milk at $0.97 ½, and Dry Wheat powder at $0.35/lb. 

Blocks and Barrels held down Class III milk. March down 10 cents to finish at $15.09, and April falling below $15 threshold, losing 17 cents and ending at $14.98.

Second half average is still holding well. July – December is averaging $16.21/cwt. Class IV milk only traded in two months today. Off 12 cents in May and 9 cents in July.  April Class IV milk was unchanged at $15.89/cwt. 

For Commodity Risk Management Group, this is Jenny Wackershauser on Know Your Markets.