Cheese Markets Starting September Strong
Spot cheese prices extended their rally in the CME dairy product session on Wednesday. Blocks added 4 ¼ cents to close at $1.64 and barrels gained 2 ¼ cents to settle at $1.58. Through the first three trading sessions in September, blocks have been able to trade 13 cents higher while barrels have appreciated 9 cents per pound in value.
Butter traded twice on Wednesday and ended a quarter-cent higher to $2.44 per pound after a 15 ¾ cent drop in the previous three sessions. Grade A nonfat dry milk declined a quarter cent to 85 ¼ cents.
Class III milk futures began Wednesday’s trade with double digit losses, however spot cheese trade led to a slight recovery off of the daily lows. September settled 4 cents higher at $16.32 while 4th quarter prices were down 1 to 5 cents. 2017 Class III milk average closed the day at $16.19 per cwt. First half 2018 finished 1 to 6 cents lower with the exception of May trading unchanged. August through October also dropped 9 to 13 cents per cwt. Class IV milk futures saw October and February 2018 down 4 and 10 cents respectively.
Corn, soybeans and crude oil were all able to build on Tuesday’s market strength as corn and beans added 2 ½ cents and crude oil climbed 45 cents. Corn is now 16 ¾ cents from their recent lows while soybeans are 38 ¾ cents above where it began on August 31.