Dairy Markets Transition Into Fall Season
Labor Day weekend marks the end of summer and beginning of school for many parts of the US. As we transition into the fall buying season for holiday dairy product needs, we see some mixed movements in the CME spot product markets this last week of August.
Cheese showed another strong move higher on Friday. Cheddar blocks gained a penny to make a new high at $1.93/lb and Cheddar barrels gained 3 ¾ cents to $1.73 ¾. Bringing out block/barrel spread to 19 ¼ cents. Butter also gained on Friday. Up ½ a cent to $2.19 but saw our weekly average drop 10 cents from the week prior.
Grade A non Fat dry milk fell a quarter of a cent to $1.04/lb Friday, finishing the week a penny higher than last week’s average. Dry why was unchanged with no trades Friday at $0.39/lb, holding unchanged from the prior week.
Class III milk reacted positively early but the lack of volume showed as we flattened during the trading session and finished mixed. August gained a penny to 16.71, September gained 6 to 17.62, but November – January fell 2 cents. Our second half average closed out August at $17.47/cwt.
Grain and feed markets finished the week on a flat note. December corn fell 1 ½ to $3.69 ¾, November Soybeans gained half a penny to 8.69 even and September Soybean meal fell 2.70 to $289.30/ton.