Positive Trade Continues
A positive trade continued to define the action on Thursday’s CME spot trade. Block cheese rose two cents to $1.5275 per pound. This repeats a move that was witnessed earlier in the month when prices rose to $1.53, before cascading lower to $1.435. As we close out the year, all eyes will be watching as to whether or not this is repeated or whether the markets can find new traction to move to higher prices.
Barrels did not move and remained at $1.44 per pound after four trades took place. The spread between blocks and barrels widens now to 8 3/4 cents. Butter rose a half cent to $2.2075 per pound and Grade A non-fat dry milk rose a penny to 67 cents. This is the highest price that's been witnessed since back in mid-December when the market was making its consecutive, day by day run to new record lows.
Surrounding the higher spot trade was a very uninterested futures trade. Cheese futures were unable to move more than a half cent higher on average and Class III milk markets rose only 8 cents in their average for the first half of the year to a price of $14.10. The whole 2018 calendar rose 4 cents to $14.79.
Class IV saw little activity and remained unchanged with its average for the first half of 2018 at $13.62 per CWT.