Class III Futures Up 27 cents
Seasonal declines in Monday’s USDA Cold Storage report brought cheese buyers to the CME spot trade on Tuesday. Following suit with Monday’s trade, barrels caught the interest of buyers while blocks did not. Barrels rose 4 ¾ cents to finish at $1.45 ¾. This narrowed the spread between blocks and barrels to just 25 cents. Although wide, this is a nickel less than where it has been of late. Blocks finished unchanged at $1.70 ¾.
Butter rose ½ cent to finish at $2.59, and grade A nonfat dry milk dropped ½ cent to 86 ½ cents.
Whey futures contracts continued the decent that began last week as nearby futures contracts have all dropped back toward 40 cents, flattening out the price curve with the average price from now through December 2018 very near 40 cents per pound.
In the Class III market, prices rose significantly in the wake of the barrel trade with the average from now through the end of December rising to $16.80, up 27 cents from Monday’s finished. Class IV markets finished unchanged at $16.84.