Class III Can't Hold Early Gains
Another round of softer prices were seen in the CME spot product markets on Wednesday as all four traded products dropped. Blocks fell 1 1/2 cents to $1.44 per pound. Barrels dropped a half cent to $1.29 1/2, now just 2 1/2 cents from the May 2016 low. Butter weakened 1 1/4 cents to $2.16 3/4 while grade A nonfat dry milk traded a 1/2 cent lower to 66 1/2 cents per pound.
Class III milk caught a bid early in the trading session today, however with product trading lower, most of those gains were eventually gone or lessened. First quarter prices dropped 1 to 5 cents while the remaining months gained 2 to 11 cents per cwt. The settlement price on Class III markets for 2018 was $14.60 per cwt. Class IV milk had few months trade with August dropping 14 cents per cwt. to $14.45. The Class IV full year average stands at $14 per cwt.