Cheese Prices Continue Upward Drive
The cheese market continued to build strength in Wednesday's CME spot dairy session. Cheddar blocks gained 4 1/4 cents to close at $1.73 1/4. Barrels added 5 cents to finish at $1.73. Barrels have now appreciated 28 3/4 cents in the past seven trading sessions while blocks have moved 14 cents higher in the past 5 sessions. Butter declined 3/4 cents to $2.41 3/4 while grade A nonfat dry milk was up 1 1/4 cents at 84 1/4 cents/pound. Whey futures dropped a penny on average to a 39-cent October price.
Class III milk futures were unable to hold onto double digit gains after cheese traded and closed near their lows on Wednesday. September was unchanged at $16.37 and October was up 5 cents at $16.33. November and December dropped 13 cents each to settle at an average Class III milk price of $16.35 for 2017. The 2017 average is now up 56 cents from a week and a half ago. 2018 first half prices declined 6 to 11 cents to finish Wednesday at an average price of $15.85 per cwt. Class IV milk futures saw no trading action on Wednesday and continued to hold a $15.64 per cwt average in 2017 and $15.68 average for the first have of 2018.