Softer Stock Markets Soften Butter, Cheese And Class III Prices
Softer stock markets ruled the conversation again on Thursday as the dow retreated another 400 points causing mass selloff across commodities in every spectrum.
Milk markets were not immune to the pressure nor were products, in the CME spot trade. Blocks fell 7 cents after four loads traded hands to finish at $1.52, while barrels retreated another 2 and three-quarters cents to end at $1.26 and a half. That marks the lowest price since the week after Fourth of July. Butter got caught up in the downward action, falling 3 and a half cents on 15 loads, the greatest volume of any product in the session. It finishes at $2.25.
Grade A nonfat dry milk was able to remain unscathed after a single load moved from seller to buyer. It finishes once more at 86 and three-quarter cents. Dry whey was also unchanged with no trades. It finishes at 57 and a half cents maintaining the record price that was set on Wednesday.
The lower butter and cheese performance added pressure to the Class III market, which fell 9 cents in the remainder of the 2018 calendar average. That price average now stands at that compares to the $16. 56 cent average for the same period on September 10, more than $1 drop in just over a month. The 2019 calendar felt pressure as well. The first half of the year fell 10 cents to come to a final average price for that period of $15.73. Class IV markets remained mostly unchanged.