Class III Futures Move Higher
Despite a larger cow herd announced in Tuesday’s USDA milk production report, the market didn’t seem to care on Wednesday. CME spot product markets were mainly higher led by cheddar blocks. Blocks gained 2.25 cents after 1 trade and closed at $1.565 per pound. Butter traded 12 loads and settled a half cent higher at $2.1875 per pound. Grade A nonfat dry finished with 4 unfilled bids and 1 unfilled offer but added a quarter cent and ended up at 69 cents even. Dry whey was unchanged at 29.25 cents per pound. Cheddar barrels were the lone product to fall as they lost a half cent on 5 trades and 7 unfilled offers.
Class III milk prices started off lower on Wednesday but reversed course after product traded. March dropped 7 cents and April was down 2 cents per cwt. May through December 2018 traded 1-6 cents higher. Second quarter 2018 is now trading at $14.53 cents per cwt while the second half settled at $15.83 cents. February 2019 also traded 7 cents higher. Class IV saw limited trade resulting in September being up 2 cents.