Milk Prices Slide On First Date of Block Trade At CME
January 13th marks the start of a new day on the Chicago Mercantile. We added Cheddar blocks to the available futures markets traded in Chicago. Blocks and barrels traditionally both utilized the cash settled cheese futures, but as the block/ barrel spread has been more sporadic in the last few years, blocks have been added as a tool for processors to better hedge their risk. We saw 2 loads trade on the first day of availability.
The CME spot trade was fairly quiet. Butter was our biggest mover – falling 5 cents to $1.87per lb. with only 1 load trading hands. Cheddar blocks were unchanged at $1.87 with no loads moving, no bids, and 1 offer. Cheddar barrels gained half a cent to $1.52 ¾ with 2 loads moving from seller to buyer.
Grade A nonfat dry milk was unchanged at $1.27 ¼ with 3 loads trading and 1 bid remaining. Dry whey had our most volume. Trading 10 loads, moving half a cent higher to $0.35 ¼ per lb.
Class III milk was mixed with first half of 2020 moving lower and July forward saw slight gains. January fell 2 to $17.01, February fell 8 to $16.90, our first half average sits at $17.20 per cwt.
Class IV saw small gains in the first half of 3- 6 cents. January held at $16.77, February at $17.04 and March at $17.35 per cwt.