Class III Falls While Class IV Moves Higher
Dairy markets reacted negatively to offers showing up in the CME spot dairy auction on Wednesday.
Cheddar blocks did end up closing unchanged for the day after 4 loads moved from seller to buyer. Blocks ended the session at $2.54/lb. Barrels sold off 5 ¾ cents following 5 trades and 3 uncovered offers to close at $2.36 ¾ per lb. Butter traded 11 times and 3 cents stronger to $1.95 ¼. Grade A nonfat dry milk finished at 98 cents per lb., up 2 ¾ cents. Dry whey fell a half cent to 32 ¼ per lb. on 12 trades.
Class III milk prices declined double digits throughout 2020. July led the charge lower, losing 35 cents per cwt. Despite the softer trade July is offering north of $19 per cwt while the full second half sits at $17.50. Class IV markets performed well adding double digits. Second half 2020 Class IV is sitting between $15.50 and $16.00 in that period.