Product Markets Continue to Surge
The trend of continued higher product prices on the CME spot trade continued on Thursday as barrels led the charge, up 3 cents with 12 loads trading and finishing at $1.42. Blocks followed suit, up 1 1/2 cents to $1.52 1/2. The spread between the two now stands at 10 1/2 cents.
Butter joined in on the action rising 1 1/2 cents as well to finish at $2.15. Grade A nonfat dry milk was the lone dissenter, dropping 1/4 cents to 72 3/4.
While there was positive action in spot product trades, there was negative action in the futures contracts. Cheese futures dropped, whey futures dropped, nonfat dry milk in following the spot trade also dropped. Butter futures soared higher and at one time printed a 10 cent higher trade on the March futures contract.
The result of this was a higher Class IV market, which in the months of March through July saw prices rise anywhere from 15 to 32 cents. Class III markets, in the wake of the lower futures trade, fell apart after a positive product trade. In the end, the average from now through June dropped a nickel to $14.12 per cwt.
One last piece of news - the CME announced today that starting March 12 dry whey will be offered as a product on the daily CME spot trade.