Butter Takes A Plunge
For the first time since July 25, whey prices move lower in the CME spot trade to drop a penny and return back to 51 and a half cents, a price it was last at on September 10.
Butter had its largest down day since mid-August, falling 7 cents, erasing this week's gains and moving back to last Friday's close of $2.23 and a half cents. Not to be outdone, barrels fell 3 cents returning to $1.36, the lowest price witnessed since July 17. Blocks on the other hand, rose 2 cents to move to $1.63 and a half.
The combination of the lower barrel trade and higher block trade widen the spread to 27 and a half cents, just 2 and a quarter cents short of the record 29 and three quarter cent spread set in July of 2017, and then tested again this July. Grade A nonfat dry milk did very little on Friday. It remained unchanged after no trades to play and finish at 87 and a quarter once more.
Average prices for the week and the CME spot trade were as follows: butter $2.27 and two thirds, cheddar blocks $1.61 and three quarters, cheddar barrels $1.39 and a third, Grade A nonfat dry milk 87 and a third cent, and dry way 52 and a quarter cents.
There was a bit of disconnect between product and Class III milk on Friday following all of the spot trade. Prices continue to march higher into the end of the trading session with the average price from now through the end of the year rising 6 cents to $16.19 while the first half of next year rose 15 cents to finish at $16.05 per cwt.