Milk Markets Suffer Steep Loses
Steep losses in Class III milk futures were widespread again on Thursday as product markets struggled.
Block cheese finished unchanged at $1.64 per pound after 7 trades took place. Barrel cheese traded 14 times and closed 3 cents lower at $1.55 per pound. Barrels at one time traded 2.75 cents higher, until a flurry of 7 trades pushed the market 5.75 cents lower within the last minute of trade. Butter was the lone product to trade in positive territory and gained 5.5 cents on 6 trades to close at $2.495 per pound. Grade A Nonfat dry milk dropped a penny on 6 bids and 4 offers to settle at 84.25 cents per pound. Nonfat dry milk futures declined even further than the spot session as 1.25 – 3 cents were erased because U.S. and European stockpiles continue to be burdensome. Whey futures also moved a 0.5 - 1.5 cents lower from November 2017 out through June 2018.
Class III milk futures closed with September down 8 cents and the 4th quarter 9 -25 cents lower. The pain in the 2017 milk price Thursday was also felt in 2018. First quarter 2018 prices were 22-25 cents lower, 2nd quarter dropped 6-13 cents and 2nd half prices weekend 10 – 14 cents per CWT. The 2017 average milk price now stands at $16.05 per CWT, while the 2018 average settled at $16.19 per CWT.
Class IV markets had September down 8 cents, October up 17 cents, December down 2 cents and March 24 cents lower. The 2017 average for Class IV is $15.82 per CWT.