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Spot Market Prices Dropping

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The bleeding continued in Wednesday's CME cash cheese market. The 40 lb. blocks were down 3.5¢, following Tuesday’s 3¢ loss and 1¢ on Monday, and are now at $2.1350/lb. Five carloads traded hands. The 1st two sales were at $2.16/lb. and the price kept slipping from there. An offer at $2.1350/lb. was left on the board.

An uncovered offer rolled the 500lb. Cheddar barrels to $2.13/lb., down 4¢.

FC Stone market analyst Ryan Cox wrote in Wednesday's Insider Opening Bell that

"There is some concern surrounding the national feed supply. Forages are tight, and weather in the Midwest has not been conducive to pasture growth."

He adds that "There has been some concern that excess milk in Europe is going into cheese at the same time Chinese buyers appear to be stepping back."

Wednesday's unfilled bid jumped the butter price 4¢, to $1.95/lb.  Three uncovered offers at $1.7875/lb. brought the powder down 1.25¢, after slipping 0.5¢ Tuesday on 2 offers, but didn't draw a buyer.  

Wednesday's Market Closing Prices:
Butter: Up 4¢, to $1.95/lb.
Cheddar blocks: Down 3.5¢, to $2.1350/lb.
Cheddar barrels: Down 4¢, to $2.13/lb.
Grade A nonfat dry milk: Down 1.25¢, to $1.7875/lb.
Class III milk: May $22.55, +7¢; Jun. $21.22, +36¢; Jly $20.43, +20¢; Aug. $19.97, +9¢; & Sept. $19.87, +11¢. Based on Wednesday's CME settlements, the Third Quarter 2014 average now stands at $20.09, +13¢ from Tuesday. The 2nd half average is now at $19.54, +9¢ from Tuesday.
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