Milk Markets Slide Lower with Cheese Fallout
Dairy markets were walloped on Tuesday. As has been expected for quite some time, barrels were unable to hold onto multi-year highs established recently. As late as Friday, barrel cheese traded and settled out at $2.22 ¾ per lb. After two sessions of trade this week, barrels dropped to $1.94 ¾ per lb. a whopping 28 cents. Four offers were left hanging in the market while zerio loads traded Tuesday. Block cheese fell 2 ¼ to $1.94 ¾ as well. The block to barrel spread sits at even after today’s trade after being as wide as 32 cents premium to the barrel market last week.
Butter added a penny following a single trade and closed with a $1.94 per lb. price. Grade A nonfat dry milk fell a half cent to $1.26 ½ with 5 offers left hanging. Dry whey finished unchanged at 36 ¼ per lb.
Class III milk markets had nowhere to go but down following the barrel cheese performance. Milk declined 8 cents in December and ranged from 16 to 24 cents softer in the first half of 2020. The first half 2020 market is offering producers $17.40 per cwt. Second half 2020 watched July fall 10 cents while the remaining months were a penny higher to 3 cents lower. Class IV milk softened 2-12 cents January through September 2020. First half Class IV 2020 prices are offering $17.60 per cwt.