Bids for single carloads of Cheddar cheese blocks and barrels and of Grade A non-fat dry milk boosted the prices for those commodities on Wednesday of this week on the Chicago Mercantile Exchange and prompted an uptick in the Class III milk futures prices for every month through January of 2015.
The unfilled bid to buy one carload of Cheddar barrels raised the price by 7.25 cents per pound to $1.8850 while the bid for Cheddar blocks added 2.75 cents to the spot market's closing price of $1.9475 for the day. During the first three days of this week, the only cheese sale on the spot market was one carload of blocks.
In the AA butter spot market, however, a high volume of sales prevailed during the first three days of this week. Wednesday's price closed unchanged at $1.64 per pound following nine carload sales, making a total or 19 carload sales so far in the week.
Spot market prices continued to edge up for non-fat dry milk. A bid on Wednesday tacked 1.25-cent per pound onto the Grade A price, which closed at $2.03 per pound. The Grade Extra price of $1.9950 per pound was up by two cents for the week.
The futures market prices for dry whey have pushed above 60 cents per pound for the first quarter of 2014. The lowest price for 2014 on the trading board during an active session on Wednesday was the 52.775 cents per pound for December.
Class III milk futures prices were also sparked by the price gains in the Cheddar cheese spot market on Wednesday. They rose by 10 to 32 cents per hundred for every month from December 2013 through January of 2015.
Those rises put the Wednesday afternoon trading prices at $19.18 per hundred for December, $18.65 for January, $17.96 for February, and $17.55 for March. For all the remaining months of 2014, the prices were in the lower half of the $17s per hundred.
The Class III milk cash price for November was due to be announced on Wednesday afternoon but was not posted by the promised time. It will, however, likely be within one or two cents of the $18.83 per hundred, which was the Class III futures price on the market for the last trading day. This would be an increase of approximately 60 cents from the October price of $18.22 per hundred.