Milk, Product Prices Keep Sliding
Milk markets did not gain any positive traction in Monday’s trade. The average price from now to the end of the year dropped an additional 14 cents to $15.81 per cwt in the Class III market. That stands $1.58 lower than the August 1 peak and continues a trend whereby the market has finished lower everyday but three since August 16. Class IV markets followed suit, down a nickel finishing at $15.77 per cwt.
All of this comes on the heels of a spot trade where butter dropped 4 ¾ cents to $2.41 per pound. This now stands as the lowest price since June 1. Blocks finished ¼ cent lower at $1.64, evening up the spread to 10 cents over the barrel market which was unchanged. Grade A nonfat dry milk finished a ½ cent lower to 82 cents per pound.
In addition, the whey futures market experienced its largest daily selloff in more than five months. Fourth quarter prices dropped more than 1 ½ cents and the average price for whey from now through the end of 2018 stands at just over 35 cents per pound.