Butter Futures Continue to Fall
Even though butter did not trade in the CME spot market on Monday, butter futures continued to play catchup from last Friday’s sell off. July was down 10 cents, and August, September and October were each down 6 cents.
Block cheese went down another 1 ¼ cent to $1.59 ¾. Barrels finished down 3 cents to $1.35. The price spread between blocks and barrels now rests at 24 ¾ cents. That tests the 25 ¼ cent spread that was held in late May, and is the third largest spread in history.
Grade A nonfat dry milk finished ½ cent lower at a price of 90 ½ cents. Whey futures contracts turned higher on Monday with the fourth quarter moving approximately a penny higher.
Class III markets were down all morning long, with an average price for the second half of the year at $16.95, down 12 cents. Class IV markets were sporadic, trading anywhere from 10 to 30 cents lower in the four months that did trade. The average for the second half of the year finished at $17.14, down 13 cents per cwt.