good day
January 22, 2020

Cheese Market Pushes Class III Even Higher

 |  By: Know Your Market

The buyers showed up to our cheese market on Wednesday. Cheddar blocks and barrels saw nice moves higher in our CME Spot trade. Blocks gained 3 ¾ cents with 2 loads trading hands to finish back at $2.00 ¼ per lb. Cheddar barrels gained 2 ¾ cents with 6 loads moving form seller to buyer to finish at $1.62 ½ per lb. 

Butter continues to struggle, losing 1 ½ cents with 1 load trading hands to $1.86 ½. Grade A nonfat dry milk gained a quarter of a cent to $1.29 3/4 with 9 loads trading hands and dry whey fell half a cent to $0.35 ¾ cents with 3 loads moving.

Class III milk liked what it saw and rallied across the board. January gained 2 to $17.05, February gained 26 to $17.80, and March gained 19 to $17.95. Second half of 2020 gained 4-16 cents and is averaging at $18.00 even for July – December. 

Class IV didn’t fare as well, Jan fell 2 to $16.71, Feb fell 17 to $16.95 and March fell 7 to $17.42.

The day finished with the cold storage report from USDA showing how we finished December of 2019. Butter continues to add to its stocks. December was 5% above November and 6% above December of 2018 with 18.1 Million lbs. 

Total Natural Cheese in storage was down 1 % from November and decreased 2% from December of 2018. Cheese stocks ended the year with 1.32 Billion lb. in cold storage.