Butter Continues to Drop
Butter continued to separate itself from world values as prices dropped another 2 cents on Monday to finish at $2.29 1/2. This is the lowest trade since mid-May and starts the month of October exactly 21 1/4 cents below where the month of September began. While no trades took place on Monday, the move lower was based on the presence of offers.
The cheese market followed along by dropping 3/4 of a cent in the block trade, settling at $1.72 3/4. Barrels dropped 1/4 cent to $1.69. Grade A nonfat dropped a 1/2 cent and finished at 82 1/4 cents, registering the most volume at 11 loads.
We will wait to see how these values compare to Tuesday morning's Global Dairy Trade.
Class III markets showed mixed results on Monday with the month of October through January all registering higher values on average by 5 cents, while February through May of 2018 registered lower values by approximately 5 cents. The 4th quarter average now rests at $16.22. Class IV markets saw downward pressure in step with the butter and powder trades and 4th quarter average prices dropped 15 cents to $15.08 per cwt.