Milk markets continue to widen the Class IV/III spread as Class IV holds over $20 for 2024 calendar and Class III milk bounces around. Class IV milk finished Thursday's trade unchanged in February at $20.13, with March down 13 at $20.06, and April down 12 cents to $20.23/cwt. We see the foward curve look even better, with August - November over $21/cwt.
Class III milk has been choppier as we work through an abundance of cheese on the market. February fell 11 cents to $16.12, March down 14 to $17.19, and April fell 14 cents to $17.49/cwt. Fall Class III milk continues to trade over $18 with Aug at $18.45 and October as high as $18.60 today.
The CME spot trade was mostly softer after some strong moves higher the last couple weeks. Cheddar Blocks fell 1 ¼ cents to $1.60 1/4, with Barrels down ¾ or a cent to $1.56 3/4/lb. Grade A Non Fat Dry milk slipped 1 ¾ cents to $1.20 ¼ with Butter down ¼ of a cent to $2.74 ½ with dry whey our lone bright spot, gaining 3 cents to $0.52/lb, breaking above $0.50 for the first time since late 2022.
By KNOW YOUR MARKET
February 8, 2024
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