Cheese Saga Continues Friday
Our cheese saga continues Friday. The CME spot trade saw cheddar barrels fall 6 ½ cents to $1.69 ½ with 8 loads trading, 4 bids and no offers. The weekly average for barrels fell from $2.24 ¾ a week ago to $1.87 this week. The average fell nearly 38 cents. Cheddar blocks fell 6 cents in Friday’s trade to $1.79 ¾. Blocks’ weekly average only moved 6 cents off of last week, showing much more stability this week.
Butter gained half a cent Friday to $1.96 per lb. with no loads trading, 2 bids and 1 offer. Grade A nonfat dry milk was ¾ of a cent higher to $1.26 ½ with 1 load trading, 12 bids and 3 offers. Dry whey slipped half a cent lower to $0.33 ¾ per lb. with 6 loads trading, 9 bids and 1 offer.
Class III milk fell 3 in December to $19.40, January took the majority of the spot cheese move, falling 21 cents to $18.03, February fell 7 to $17.60 and we saw gains in second half of 2020 of 2-4 cents.
Class IV was mostly unchanged. December at $16.73, January at $17.10 and February at $17.32 per cwt.
News broke Thursday of the phase I agreement with China. Grains responded favorable on the overnight trade into Friday, but gradually moved off of the day’s highs. March corn gained 3 ¼ to $3.81 even, January soybeans gained 8 ½ to $9.06 ¾, and January soybean meal gained $2.50 to $296.70 per ton.