CME Product Markets Continue Slide
Further weakness in product and milk markets was seen on Tuesday. Barrels traded three loads and fell another 2 1/2 cents to $1.30 per pound. Barrels now find themselves within 3 cents of their previous low put into place in May of 2016. Milk at that time traded as low as $12.76 per cwt. Blocks slid 3 1/2 cents and closed at $1.45 1/2 pound. Butter declined a penny to $2.18. Grade A nonfat dry milk completed the cycle as it dropped 3/4 of a cent. Dry milk was the most active product on Tuesday with 7 loads changing hands. The settlement price came in at 67 cents per pound.
All Class III and IV months that traded on Tuesday finished lower. January and February softened 5 and 6 cents, respectively. March through July had the greatest weakness as 10 to 13 cents eroded from their prices. August to December declined 2 to 7 cents. The 2018 full year average closed today at $14.55 per cwt. January 2019 also softened 4 cents to $15.35 per cwt. February and March 2018 each put in lows at $13.07 on Tuesday, just 31 cents away from the 2016 low. Class IV followed suit as February dropped 9 cents, March through May 14 to 17 cents, and 2 to 12 cents between June and September. The full year 2018 average for Class IV settled at $14.12 per cwt.