Record Class Price Spreads and Butter Cheese Inversion

ZISK
Oct 15
1 min read

U.S. dairy prices are struggling to find ground, amid low demand and plenty of production to meet needs. Exports have been helpful, despite an ongoing trade war with China, but world dairy prices have drifted lower for the third month in a row. Among all the negative news, we have seen a few rare occurrences take place, giving opportunities to a few and uncertainty of where prices will go from here.

Butter fell to $1.605 last week, creating an inversion in the market where butter is trading below the current price of cheese at $1.70 for blocks, and barrels closing last week out at $1.71. This is rare occurrence not seen in several years.

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