Class III Prices Keep Turning Up The Heat
Friday’s markets were mixed as we saw lower moves in the CME spot market but Class III kept moving higher. Cheese has been driving the market and it was quiet – Blocks were unchanged at $1.84 ¼ with no loads trading, no bids and 1 offer. Barrels also unchanged at $2.18 ½ with 0 trades, 0 bids, and 0 offers. The block barrel spread remains inverted at 34 ¼ cents.
Grade A non fat Dry milk fell half a cent Friday to $1.22/lb with 15 loads trading, but the week gained a penny. Dry Whey fell ¾ of a cent to $0.34 ¾ /lb with 3 loads trading hands. Whey gained a whopping 5 cents in weekly average from last week’s level, putting support into Class III milk.
Butter fell a penny and a half on Friday with 6 loads trading to $2.02 1/2 /lb. Its weekly average fell a penny.
The USDA released the October cold storage report. Highlights were an adjustment to September’s butter stocks and we saw inventories for butter drop 18% from the previous month to 238 million lbs., this remains 3 % above 2018 levels.
Natural Cheese stocks fell 2% in October over the previous month to 1.34 billion lbs with the biggest move lower in American style cheese, while other varieties increased their inventories. Storage levels are 2% lower than October of 2018
Class III milk finished with Nov up1 to 20.36, Dec gained 9 to 18.78. Class IV was mostly unchanged but December fell 5 to 17.02, Nov held at 16.65, and January at 17.34/cwt.