Class IV Prices Stagnant Despite Robust Butter Trade
As the old saying goes, the cream always rises to the top. That was certainly the case as one looks at the volume traded in today's CME spot trade for butter. Prices rose a half a cent to $2.185 per pound, but 40 loads moved from sellers to buyers with six bids and offers remaining after the trade was finished. Blocks dropped a penny and a half to move to $1.53, while barrels drop two and a half to $1.475, widening the spread to 5.5 cents, 11 loads traded between the two cheddar markets.
Grade A nonfat dry milk remained unchanged again at 69.75 cents, 7 loads did trade hands however. Dry whey was unchanged. No action there and it finishes again at 29 cents.
The softer cheese market took its toll on the Class III prices as the average for now through December dropped three cents to $15.21 per cwt. Despite the robust activity in the butter complex, the Class IV market was unmoved, it finished again at $14.15 per cwt for its average from now through December.
On Thursday at 11 a.m. Central, the USDA will release their March stocks report together with the prospect of plantings report, which as of now has analysts guessing on average 89.5 million acres of corn and 91.5 million acres of soybeans.