Market Tug Of War
This past week was certainly a roller coaster week for the CME spot butter trade, with each day offsetting the work done in the day that preceded it.
On Friday, CME spot butter finished 1.5₵ lower, after 2 trades took place, ending at a final price of $2.105 per pound. Blocks were down 4.25₵ after 1 trade was tendered with a final price of $1.48 per pound. That nearly erases all of the lightning bolt rally that took place last Friday. Barrels were down 25₵ to $1.4175 per pound on 5 trades. By bringing those two markets together the spread now stands at 6.25₵. Grade A Nonfat dry milk was down a penny after 7 loads traded. The final price was 86.75₵ per pound.
The average price for this week’s trade on powder was just under 86₵, barrels averaged $1.4225 per pound, blocks were $1.53 per pound and butter came in at $2.1070 per pound. All products saw an increase in value over the previous week’s average.
Looking at the milk markets, Class III markets were down 10₵ on average for much of the year. Class IV markets traded very lightly.
This week’s back and forth story of butter did not end there. Corn markets acted in much the same manner with Tuesday’s big rally coming on the heels of a wetter forecast. A conflicting forecast that would create a tug of war in the days that followed. Friday’s trade was down largely 2₵ throughout the complex.