Weakness Hits The Dairy Markets, Again
Weakness once again hit the dairy complex on Wednesday.
Block cheese slid the most, falling 5 cents to a value of $1.66 per lb. and just a single trade moved from seller to buyer. Barrels performed much better, adding a half cent on nine trades and ended at $1.32 and a quarter. Butter fell two cents with solid volume of 13 loads exchanging hands.
Butter settled at $1.50 and a quarter cent. Dry whey traded three times and a quarter cent softer to 33 and three-quarter cents per lb. Nonfat dry milk lost 1 and three-quarter cents to 99 and three-quarter cents.
Class III milk struggled with the negative spot session. August lost 24 cents per cwt. mainly due to a soft basis within the National Dairy Product Sales Report yesterday. September traded beneath $15 here on Thursday, but closed at $15.10 per cwt.
At the beginning of August, the September contract was trading at $18.92 per cwt. Fourth quarter 2020 declined 16-24 cents and 2021 also dropped 8-22 cents per cwt. Quarter four Class IV milk was hit hard as well, falling 37-43 cents per cwt.