Massive Market Selloffs Drop Class III Prices
Sellers came to shoot out the lights on Monday as block cheese dropped another 4 cents to erase half of its rally from last week. Prices finished at $1.49. Barrels fell 8 cents, again leading the pack with 11 loads changing hands. Price finished at $1.58, tightening the spread once again to 9 cents.
Butter dropped 4 1/2 cents, back to $2.20. Grade A nonfat continued with its fifth consecutive session of new record lifetime lows dropping 3/4 of a cent to 65 cents.
Class III markets took this as a slap in the face, especially in the first quarter of 2018 as prices dropped, on average, 32 cents. All three contracts of the first quarter are near $14. The February contract finished at $13.88, the first time any of these contracts have closed below $14. The first half of the year now rests at $14.33, down 21 cents from Friday's average finish. The whole year of 2018 moved below $15 on its average for the first time, to $14.94 per cwt.
Class IV markets on the weaker butter and powder trade dropped 15 cents in the first quarter. However, very little trade joined it in other months. The first half of the year dropped a nickel to $13.73.