The Market Gives and Takes Away
The market giveth and the market taketh away. That was the theme on Wednesday as the block and barrel markets dropped in the wake of Tuesday’s meteoric rise.
Blocks traded a single load and finished at $1.74 down 4.75₵. Barrels were down 7₵ to $1.59 after 21 loads traded hands. Butter gained 2.75₵ to finish at a price of $2.71 after 11 loads traded hands and the Grade A nonfat dry milk market dropped 0.25₵ to 86.5₵ on 4 loads.
While there’s no question that cheese was the subject of discussion on Wednesday, te move in Monday’s whey market also has evaporated over the past couple of days. With spot futures contracts returning back towards 40₵, leveling the price curve from now through the end of 2018.
None of this was welcome news for the Class III market where the August fell 26₵, the September contract dropped more than 40₵, October was off nearly 30₵ and the November contract fell 22₵ per cwt. In the end the average price from now through December closed at $16.98 per cwt, a 27₵ fall from Tuesday’s rise.
Class IV markets fell as well. The final average price now stands at $17.02 per cwt.