By: Bob Meyer
Cash cheese and butter moved higher on the Chicago Mercantile Exchange on Friday with Class III futures responding accordingly. Barrels up 1.25 cents to $1.765 and blocks up 1.75 cents at $1.80. After losing 8.5 cents on Tuesday and Wednesday, butter held steady on Thursday and increased 1.25 cents on Friday to close at $1.5425 per pound.
For the week, cash cheese barrels increased 1.5 cents, blocks gained 4 cents, butter declined 6.75 cents, Grade A nonfat dry milk held steady while Extra Grade increased 2 cents a pound. The October, November and December Class III futures contracts gained an average 23 cents for the week.
Eric Meyer with HighGround Dairy says while the Class III contracts have been range-trading for a while, the last seven weekly closes have been in a very tight range. He thinks the market is building momentum to push higher.