Blocks and Barrels Hold Class III Prices Down
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.