Product Trades Take Another Drop
A negative tone gripped the CME spot market on Monday as butter dropped 3 ¼ cents to $2.69 ¾. Blocks continued the downward trend of late, dropping 1 ¾ cents to $1.68. This fallout happened on offers only without any trades taking place. Barrels followed suit in their inactivity, but finished unchanged at $1.53 per pound. The spread between blocks and barrels now sits at 15 cents.
Grade A nonfat dry milk dropped another 1 ¼ cents to go back to 85 cents, the lowest price witnessed in that market since early July.
The softer block cheese trade brought continued pressure to the Class III market as the average price from now through December slipped to $16.70 per cwt, within 13 cents of the lowest price traded for that average since back in late April. Some of the downward pressure of late has come from the U.S. dollar. That value bottomed out last week at an index of 9239 but has regained more than 100 points, diminishing some of the hopes for growing U.S. exports.