Dairy Markets Week in Review

Industry eyes are on the large price spread which grew this week between Chicago Mercantile Exchange block and barrel cheese. It is the longest lived spread ever and is hurting barrel manufacturers particularly.

The blocks closed the third week of December at $1.7025 per pound, up a quarter-cent on the week, and 40 cents above a year ago when the blocks plunged 21 cents, to $1.3025. Barrel closed December 18 at $1.44, down 2 cents on the week, 8 1/2-cents above a year ago, but 26 1/4-cents below the block price. Forty five cars of block traded hands on the week and only two of barrel. The NASS-surveyed U.S. average block price averaged $1.6227, up 3.8 cents. Barrel averaged $1.5165, down slightly.

Butter closed at $1.3250, down 12 1/2-cents on the week, but 15 1/2-cents above a year ago. Eight cars were sold. NASS butter averaged $1.4520, down 4.6 cents.

Cash Grade A nonfat dry milk closed Friday at $1.37, down a penny. Extra Grade held all week at $1.40. NASS nonfat dry milk averaged $1.2756, up 1.4 cents. Dry whey averaged 36.34 cents, up 0.1 cent.

Provided courtesy of Dairyline.