Class III Milk Futures Continue Downward Spiral
Class III milk futures began this week in the same fashion as they ended the last. December lost another 11 cents to $13.65 per cwt. January faired worse offering another 17 cents while February fell 19 cents. March declined 7 cents and the remaining months ranged from a penny softer to 3 cents higher.
Class IV markets were much less active with January down 5 cents, March up 7 and November 10 cents higher. All other months in Class IV moved sparingly.
CME product markets led milk lower once again. Block cheese dropped another 2 cents to $1.33 per pound while barrels dropped 1 1/2 cents to settle out at $1.20 3/4. With Monday's close barrels returned to the bottom end of the range that we have seen four different times in 2018, with June being the low at $1.20 1/2, definitely a watch point moving forward with huge cheese stocks. Butter lost 3/4 of a cent which presses it against the lower end of its range throughout the second half of this year. Grade A nonfat dry milk added 1 1/4 to 89 and 3/4 while dried whey was unchanged at 43 3/4 per pound.