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.