Class III Prices Continue to Slide
Class III milk prices continued their weaker trade on Thursday as they have all month. Third quarter prices declined 10 to 21 cents while the fourth quarter was down 7 to 14 cents. As a result the second half average dropped to $16.53 cents per cwt.
2018 prices took an opposite sentiment and moved higher, primarily. January was down 4 cents while February through September prices were 1 to 7 cents lower. Fourth quarter 2018 prices gained 15 to 25 cents on limited trades.
Class IV markets dropped 11 and 19 cents in September and October, respectively.
CME spot dairy prices were unchanged on Thursday with the exception of Cheddar barrels, which were down 2 cents on four trades to $1.35 per pound. Butter closed at $2.64 while blocks closed at $1.51. Nonfat dry milk finished at 84 ½ cents.
Ahead of Friday’s much anticipated USDA acreage and quarterly stocks report, wheat was the big gainer on deteriorating conditions on the Minneapolis wheat market. Minneapolis wheat closed 30 cents higher while the Kansas City market gained 19 cents and Chicago was up 23 cents. Soybeans closed 3 cents higher and 11 cents from their daily high. Corn was up 3 to 4 cents.
Tomorrow we will get an update on final planted acreage numbers and will be sure to see some volatility.