Class III Making A Comeback?
Class III milk had another positive trading day on Friday with the exception of February. The nearby month lost 5 cents to finish the week at $13.95/cwt. However March showed the largest gains on the day, up 18 cents to close out trading at $14.90. Second half average is holding stead and came in at $16.25/ cwt. Showing gains from 1-10 cents.
The CME spot product traded showed little change from our averages a week ago. Butter held at $2.25/lb on 26 trades. Cheddar Blocks average was up 2 cents to $1.59 ½ / lb , however Cheddar Barrels were down a penny from last week’s average to $1.41 ½ /lb.
Grade A Non Fat Dry Milk was unchanged this week to average $0.99 ¼ on 4 trades. Dry whey was up 1 cent to finish the week averaging $0.35 ½ on 38 trades.
The USDA cold storage report for December came out late Friday afternoon. Butter inventories came in higher than expected, finishing December 2018 with the highest carryout we have seen since 1993. The 179 million lbs is up 6.2% from December 2017 and a 16.6% gain over November 2018 levels.
Cheese inventories showed the largest year ending stocks on record, but not the largest we have seen. 1.34 billion pounds of cheese is down 3/10 of a percent (0.3%) from November’s report, but its 5% higher than ending stocks in December 2017.
For Commodity Risk Management Group, this is Jenny Wackershauser on Know your Markets.