Markets Take a Nosedive
On July 21, blocks held an impressive 29 ¾ cent premium over barrels. Exactly one month later on August 21 the barrels held a 1 ¾ cent premium over blocks. But that ended Tuesday as both markets retreated to finish at $1.72, leaving them equally yoked. Blocks were down 2 ¼ while barrels fell 4 cents.
Butter dropped 5 ¾ cents to finish at $2.57. Grade A nonfat dry milk continued its retreat and dropped at ½ cent to finish at a price of 82 ¾.
There was some positive news, however, as whey prices moved 1/3 cent higher to leave spot values just shy of 42 cents. The price curve out through the end of 2018 is still averaging near 40 cents.
Despite whey’s best efforts, it could still not overcome the negativity surrounding the spot trade. As a result, Class III and Class IV markets did not fare well in Tuesday’s trade. Class III prices dropped 18 cents on the average from now until the end of the year, finishing at $16.68 per cwt. Class IV markets retreated 32 cents in September but the average from now through the end of the year finished at $16.31, down 13 cents per cwt.