Product Prices Firm Up
As the Trump administration's conviction regarding tariffs takes a softer tone, dairy product prices in the CME spot trade took a firmer tone in Monday's trade. Barrels worked to close the gap between them and blocks by moving 2 3/4 cents higher after 10 loads traded hands finishing at $1.47 3/4. Blocks remained unchanged with no trades taking place finishing again at $1.60 1/4.
Butter was the price leader moving 3 1/4 cents higher after 12 loads moved from seller to the buyer to finish at $2.32 cents. This takes us just a penny and a half from last week's peak of $2.33 1/2 and ushers in the second highest price since last October. Dried whey moved in the opposite direction and fell a penny to 31 cents, no trades took place there either. Following suit in that regard was grade A nonfat dry milk which was unchanged at 72 3/4 cents.
The generally firmer tone and product spilled over into the Class III market which early in the session was up just a few cents after product trade. The month of May, June and July all were up 10 to 15 cents. By the end of trade the average from now through December rose to $15.61, that's nine cents higher from Friday's settlement. Class IV markets saw little action and the average from now through the end of the year finished a penny higher at $14.61.