Blocks, Class III Futures Continue Freefall
In Wednesday’s CME spot dairy session cheese markets were the most active. Cheddar blocks closed at $1.51 on 10 trades which was 1 ½ cents lower. Barrel markets gained a ¼ cent on 15 trades and finished at $1.37. The spread between blocks and barrels which was once 26 cents has now dropped to 14 cents. Cheddar blocks have declined 23 ¾ cents from the peak of $1.74 ¾ cents on June 1.
The butter market added 1 ½ cents on 3 trades and closed at $2.64, while nonfat dry milk was up ¼ cents on eight bids.
Class III milk futures began Wednesday’s trade with a weaker tone and stayed lower throughout. July closed 8 cents lower while August through December were 11 to 16 cents lower. The second-half 2017 average closed at $16.66 per cwt, 64 cents lower than where it started at the beginning of the month.
First half 2018 markets also experienced softness and dropped 10 to 17 cents from January through May, while June was down 4 cents. First half 2018 is currently offering producers $16.50 per cwt.
Class IV markets saw little change but October traded a penny higher to $17.07 per cwt.