Cheese Markets Take A Tumble
In November 2017, barrel cheese would make a high of $1.75 and ¼ cents. It would descend from there to make it slow on January 12, 2018, at $1.21 and ¾ cents. The very next day, the market popped to $1.27 and ½ cents and hasn't looked back until today.
Barrel cheese prices on the CME spot trade closed at $1.28 and a ½ cents after falling 2 and ½ cents. That is the third lowest settlement of the year and just 7 cents from the year’s low. Block cheese followed a similar pattern, falling 1/2 cent on Friday to finish at $1.49. That now takes it within 5 and ¼ cents of its low for calendar year 2018. And once more, the block barrel spread now widens to 20 and ½ cents.
Elsewhere in the CME spot trade, Grade A nonfat dry milk dropped ¾ cents on two loads to finish at 76 and ¼ cents. Butter remained unchanged at $2.29 and dry whey finished 3/4 cents higher at 39 and ¾ cents. The average price for these five products for the week was as follows: Butter $2.30 cents per lb., block cheese $1.53, barrels just over $1.32, Grade A nonfat dry milk 76 and ¼ cents, dry whey just under 39 and ½ cents on its average for the week. In light of the struggling cheese market, Class III prices continued their move lower. The average from now through the balance of the year stands at $15.60, down another 7 cents from Thursday's finish. Class IV markets remained quiet on Friday settling unchanged.