Markets Finish Rough Week
What a difference a week can make in the dairy markets. During the trading week of August 14th through the 18th, barrel markets climbed 16 ½ cents to $1.75 per pound while September milk peaked at $17.30 per cwt. This week, however, sellers showed up in both product and the Class III milk futures markets. Barrels initially climbed a penny on Monday but went into a freefall beyond that as 19 ¼ cents disappeared from the market to settle the week at $1.55 ¾. September futures closed 66 cents per cwt below the $17.30 peak at $16.64.
Blocks dropped 4 ¾ cents on Friday to $1.65 per pound and regained a 9 ¼ cent premium over barrels. Butter was unchanged at $2.62 ¾ while nonfat dry milk closed at 84 ½ cents, also unchanged for the day.
Despite large losses in the spot cheese market, Class III milk futures remained quite tame and traded infrequently. August 2017 through June 2018 closed in a range of 3 cents lower to 3 cents higher. The 2017 milk average closed this week at $16.51 while first half 2018 is currently offering $16.44 per cwt. Class IV markets saw September trade 3 cents higher and December 5 cents lower. The 2017 Class IV average is $16.50 while the first half 2018 average closed at $15.90 per cwt.