Product Markets Put Anchor on Milk Futures
Blocks and barrels once again found themselves moving in opposite directions on Monday. Blocks fell 4 1/4 cents to $1.52 while barrels moved higher to finish 1 1/2 cents above Friday's close to rest at $1.55. That moves the spread to an inverted position of barrels over blocks by 3 cents.
Butter dropped 2 1/2 cents to $2.19. That's the third lowest finish in the last month as the market has been lingering at its lowest levels since spring. Grade A nonfat dry milk fell a penny, finishing at 71 cents.
In the wake of all of this the Class III market found itself lower, especially in the months from January through April where prices were down 15 to 20 cents. Looking at the first half of the year the average price for that period dropped 14 cents to a $14.70 average price. The whole year 2018 finished at $15.24, down 8 cents. Class IV markets saw increased volume, mostly in the second half of the year. Prices dropped 36 cents on average, and the average price for that period now rests at $14.90. It brought the whole year average down to $14.47, 19 cents lower than Friday's finish.