November 10, 2017

Softer Block Trade Drops Class III Milk

 |  By: Know Your Market

A look back on the week reveals no shortage of excitement, especially in the block cheese market.

On Wednesday block cheese drifted lower to a price of $1.60. Then on Thursday, as it was when we were last at these prices in September, buyers returned. However, since their return no trades have taken place. Prices rose 11 1/4 cents on Thursday to return to last Friday's close but finished a 1/2 cent lower on Friday at $1.71. Barrel cheese rose 1/4 cent on Friday to $1.75 1/4, maintaining the strength that has been exhibited all week.

Grade A nonfat dry milk dropped 1/2 cent to finish at 72 1/4, a territory that it is quite familiar with. The butter market was the big mover on Friday, rising 3 1/4 cents after 8 loads traded hands, finishing at $2.25 1/2 per pound. Butter wins the prize for having the most volume traded in the week with a total of 50 loads moving from buyer to seller.

The average price for the week are as follows:

  • Butter: just shy of $2.22
  • Block cheese: just over $1.67
  • Barrels: $1.72 1/3
  • Nonfat dry milk: just over 72 cents per pound

The softer block trade that came after offers led the market lower without any trades brought a high degree of skepticism to the milk market. December dropped 16 cents while the first quarter of 2018 dropped an average of 25 cents. When looking at the first 6 months of 2018 the average price dropped 15 cents to $15.02. Class IV markets saw little trade and in the end their average for the first six months of 2018 finished a penny higher at $14.04.