Cheese Losses Drop Class III Prices
Weakness in the CME spot product session led to double digit losses in the Class III milk markets on Tuesday.
Cheddar blocks fell a quarter cent on five trades to finish at $1.75 3/4. Cheddar barrels declined a half cent to close at $1.70 1/2. Butter was the lone product to trade higher and moved up a half cent to $2.32 1/2. Grade A nonfat dry milk produced the largest loss on Tuesday as spot markets dropped 1 3/4 cents to 80 1/2 cents. This is the lowest spot price since April 6, 2017 for nonfat dry milk. Powder futures prices also dropped 1 to 3 1/2 cents. Dry whey futures weakened by a half cent to 36 cents per pound.
Class III milk futures markets dropped 5 cents in October, 19 cents in November and 25 cents in December. 4th quarter 2017 average settled at $16.25 per cwt. First half 2018 closed 10 to 20 cents lower to close at an average price of $15.60 per cwt while July was down 19 and September through November declined 4 to 7 cents. August and December 2018 did not trade. Class IV milk markets showed no change on Tuesday.