Inventories Drop But Prices Rise For Cheese And Butter
It's been since Sept. 12 that barrel cheddar was able to post a higher finish from the prior session, but it happened again on Monday.
Barrels rose 2 cents, however, without a trade, to finish at $1.38. Block cheddar was without a trade but did not move. It holds at $1.63 and a half. The spread between the two now stands at 25 and a half cents.
Also unchanged on the day was Grade A nonfat dry milk. It finishes once more at 87 and a quarter and it, too, did not trade. Dry whey did not trade either but rose three-quarters of a cent to finish at 52 and a quarter cent while butter lead the pack, rising 4 cents to $2.27 and a half. It posted the only trades of the CME spot session. Six loads move from seller the buyer.
While the price of cheese and butter was on the rise and Monday session, their inventories were not, and so we enter the seasonal drop down for product. In Monday's cold storage report butter dropped 9% from July's inventories to 290.8 million pounds, however, that number is still 4% greater than August 2017. Total natural cheese in inventory dropped as well falling 4% from last, however the 1.36 billion pounds that’s still in storage is 2% larger than last August.
The class III market was able to move from low single digit losses early in the session to low single digit gains later after product traded. By the end of trade, the average price from now through the end of the year finished unchanged at $16.20. Class IV markets followed suit with the average from now through the end of the year rising 4 cents to $15.09.