Milk Futures Take a Dive
After posting gains the first three days of this week in Class III futures markets, sellers showed up in a big way on Thursday in both milk and product markets.
October milk dropped 19 cents, November was down 26 cents and December declined 32 cents per cwt. At the close the 4th quarter 2017 average was $16.15, down a quarter from Wednesday. First half 2018 prices were also down double digits. January through March futures decreased 15 to 30 cents while 2nd quarter prices softened 10 to 22 cents per cwt. First half 2018 closed Thursday's trade at $15.43 per cwt, while 2nd half 2018 had September and October each down a penny while December declined 2 cents. July, August and November were unchanged.
Class IV markets also weakened. October dropped 3 cents while November and December lost 13 cents. 4th quarter 2017 is now offering $14.77 per cwt.
CME spot dairy product markets on Thursday saw cheddar blocks finish unchanged at $1.72. The barrel market slid 3 1/4 cents and closed at $1.64 3/4. Butter faded 4 cents and ended at $2.35 1/2 while grade A nonfat dry milk gave back a penny from yesterday's trade and closed at 75 3/4 cents.