Cheese Drives Class III Higher
The path of cheese and butter continues to move in opposite directions. Butter dropped again on Monday's CME spot trade to finish at $2.32 1/2 falling 2 3/4 cents with no loads trading hands. Cheese continued skyward with blocks rising 2 3/4 cents to finish at $1.69 1/4. A single load moved from seller to buyer. Barrel cheese rose 5 1/4 to continue to close the gap between blacks and barrels. Three loads traded hands and it finished at $1.65 1/4.
Grade A nonfat dry milk rose 1 3/4 cents, putting forth the greatest activity in the session. Six loads traded hands and it finished at 86 cents. Dried whey rose 1/4 cent to finish at 32 cents a pound on a single load.
The stronger cheese trade bolstered greater action in the Class III market where prices rose 13 cents in their average from now through December to finish at $16.24 cents per cwt. Class IV markets saw increased activity on Monday. It's average moved to $15.71 from now through December, up 6 cents from Friday's finish.
On another note, U.S. corn plantings rose to 39% versus the five year average of 44%. While still behind this cuts last week's deficit in half.