6 May 2024
Search
Close this search box.

High Class III prices, depooling lead to negative PPDs

Milk pricing in federal marketing orders is complicated under normal circumstances, but many dairy farmers have been bewildered by milk checks that didn’t reflect the soaring Class III prices they expected in their pool’s blend price.

Dairy prices seem confused

Cash dairy prices seemed confused the first week of autumn. Block Cheddar shot up to $2.6475 per pound last Monday, the highest CME price since July 21, but then reversed direction Tuesday, and fell to $2.54 on Wednesday.

Unpredictable cheese prices set tone for dairy markets

Volatility continues in the dairy market as cheese prices stay volatile. On the Chicago Mercantile Exchange (CME) 40-pound cheddar cheese fell to $1.00 per pound in April, rallied in May averaging $1.67 and continued to increase in June averaging $2.562, setting a record of $3.00 in July and averaging $2.6466 before falling below $2.00 early August, being as low as $1.58 and averaging $1.773 for the month.