May 30, 2017

Cheese Prices Continue Wild Ride

 |  By: Know Your Market

Buyers of cheese reappeared after the three day weekend to continue the trade that has kept many in suspense. Barrel cheese was up 6 cents on Tuesday with values finishing at $1.54 after 14 loads traded hands. Block cheese took the opposite direction moving ¼-cent lower to $1.73 on six loads traded. With the fall in blocks and rise in barrels the spread between the two now stands at 19 cents, a five 1/4 cent correction from last Friday’s 25 ¼ cents that stands as the second widest spread in the history of trading cheese at the Chicago Mercantile Exchange. That’s second only to late 2009 when the spread was 26 ¼ cents.

Grade A nonfat dry milk was up ¾ of a cent to 93 ½ cents per pound. Rounding it out, the butter market was unchanged at $2.36 cents. While still 7 cents off its high, butter still stands at the highest levels since last June’s peak.

Despite a robust barrel cheese trade Class III markets couldn’t muster enough strength to make a move of its own. The average price for all months from now through December finished 2 cents higher at $16.91. Class IV markets traded sporadically, and all months that traded were lower.  

This block is broken or missing. You may be missing content or you might need to enable the original module.