Cash dairy prices mostly dropped on the Chicago Mercantile Exchange this Tuesday, sending ripples throughout the industry. Let’s break it down.
Let’s begin with dry whey. It saw a slight uptick, increasing by $0.0025 to settle at $0.59. One sale was made at that price, signaling a minor but notable shift. However, the overall trend in the market is bearish. Blocks dropped by $0.01, resting at $2.19, while barrels took a harder hit, decreasing by $0.0450 to close at $2.5450. Butter also slid down by $0.04, finally reaching $2.90, with one sale closing at that price.
Are you curious about nonfat dry milk? It, too, faced a downturn. Prices fell by $0.0025 to $1.3775, with seven sales moving between $1.3750 and $1.38. The data speaks volumes about current market sentiment, raising the question of whether we are heading toward a prolonged bearish phase that requires immediate attention.
- Dry Whey: Up $0.0025 at $0.59
- Blocks: Down $0.01 at $2.19
- Barrels: Down $0.0450 at $2.5450
- Butter: Down $0.04 at $2.90
- Nonfat Dry Milk: Down $0.0025 at $1.3775
Spot cheese continues to lose ground, with barrels and blocks both seeing significant dips. Zero lots were exchanged, adding to the uncertainty. Butter followed suit, closing at a lower $2.9000 per pound.
Futures mirrored this trend, with Q4 Class III prices closing at $22.45 per hundredweight, 45 cents down, while Q4 Class IV futures slid to $21.99, losing 17 cents. Both Germany and the UK reported declines in milk production, contributing to the market’s bearish tone. However, in contrast, France saw a year-over-year increase, providing a glimmer of hope and potential for market recovery.
