Milk Prices Soar on Cheese Trade
In its most exciting trade of the week, CME spot barrels traded 4.5₵ higher after 22 loads were brought to the exchange and picked up by buyers. Since total weekly volume was only 38 loads, Friday’s activity represented over half of the week’s volume.
Block cheese joined in on the fun with five loads trading. Those trades representing the only block cheese trades this week. Prices moved up 7₵ to finish at $1.545 per pound. The block/ barrel spread now stands at 11.75₵.
Not to be left out, the butter market rose 2.25₵ after 4 loads traded, finishing at $2.09 per pound. Grade A nonfat dry milk powder had three loads exchanged with the final prices up 0.75₵, finishing at 85.5₵ per pound.
The weekly average price for butter was $2.07 per pound. Block cheese was $1.49 with barrels just over $1.41 and Grade A nonfat powder registering an average of 85₵ per pound.
The positive movement in the spot session sent Class III markets soaring. Prices averaged 15₵ higher for the second half of the year, with nearby contracts up nearly 30₵.
Class IV markets saw sporadic activity and was also higher where it traded.