The Bouncy Cheese Market
In the CME spot session on Wednesday the barrel market continued to move back and forth inside of the range of roughly a $1.50 and $1.57. Unfortunately that means that barrels had to move lower to fulfill such a statement. In the end, barrels dropped 7 cents to $1.50 on heavy trading. Blocks followed suit and dropped 2 1/2 cents to $1.61 1/2. This leaves the spread between the two at 11 1/2 cents.
Butter got caught up in the emotion of it all and dropped a penny to finish at $2.41 3/4. Grade A nonfat dry milk took the opposite direction by rising 1 1/4 cents to 83 1/4 cents.
As can often be the case, whey futures contracts rebounded along with the nonfat dry milk to recover some of Monday's losses by rising anywhere from 1/4 to 3/4 of a cent in contracts from now until January 2018.
While it was a dramatic cheese trade, Class III milk markets were much more mellow finishing 10 cents lower at an average price of $15.94 from now through the end of the year. Class IV markets rose slightly to an average of $15.78, up a penny.