Markets Take Class III to More Than $17
An increase in product markets spurred an upward trend in Class III prices for the remainder of 2017.
Rumors of a Canadian butter transaction and perceived shortness of block cheese brought buyers to the market. The butter market was up 11 cents after 9 trades, with the final price settling at $2.24 per pound. Block cheese was up a nickel to $1.65 per pound. Barrel cheese was up 10 cents, settling at $1.56 per pound. Grade A non-fat dry milk was also higher, up a ½ cent to finish at 86 ¼ cents. Whey futures rose approximately 1 ½ cents through the end of the year.
This was good news for the Class III market which was already higher before the spot trade took place but continued after the support came in higher product trades. In the end the average price for all months through the end of the year finished at $17.07 per cwt, a 27-cent price increase and the highest level that has been witnessed since late February.
Class IV market trade sporadically, with those months that traded up 15 to 30 cents. The average price for Class IV milk now through the end of the year remains at $15.26 per cwt.