Milk Futures Dropping Quickly
July 2017 milk futures have slid dramatically since the beginning of June. In total, the July futures market has lost $1.40 per cwt in its 3-week time span and is now testing the $15.75 lows established in April.
This week alone has saw July decline 46 cents in just three trading sessions. Much of this drop comes as little surprise as cow numbers and milk production increased in Monday’s USDA milk production report.
On Wednesday July milk finished 2 cents lower at $15.95 per cwt. August finished even while September through December were down 2 to 5 cents. Q1 2018 futures declined 2 to 6 cents, April and May down 10 and 11 cents respectively and June down a penny.
Since June 13 the second half average had dropped 44 cents per cwt to $16.83.
Class IV markets had December 2017 down 10 cents and May 2018 down 14 cents.
CME spot product markets saw butter drop 4 ½ cents to $2.58 ½, while nonfat dry milk lost 3 cents to finish at 86 cents per pound.
Cheddar blocks softened 3 ¾ cents to $1.56 while barrels traded 2 cents higher at $1.35 3/4 . The block and barrel spread narrowed 5 ¾ cents on Wednesday but still stands at 20 ¼ cents.