Butter's Texas Two Step
Another chapter in the CME pit session for spot-traded products came to a close on Friday. On Monday, the block and barrel cheese markets began their spot trade on the electronic platform that powder and butter had preceded them in. However, the volume on the first day of trading on the electronic platform was much unlike the volume of the last day of the pit session on Friday when 21 loads traded. On Monday, while no barrels traded there was one load of blocks that did trade, with the price settling down 1 ½ cents, with the final price at $1.52 ½. Barrels were down ¼ cent and finished at $1.36 ¾.
Grade A nonfat dry milk was down ¼ as well, finishing at 84 ½ cents.
Butter, back in its Texas two-step formation, after being down late last week resurged up 3 ¼ cents to settle at a final price of $2.62 ¼.
In the Class III markets, prices remained lower all day and the final average price for all months from now through the end of the year settled at $16.80, down 11 cents. Class IV markets remained firm on normal, light volume and finished at $16.80, up 9 cents.