A total of 56 loads traded this week, the most activity since late August 2006. Class III futures are playing catch-up with spot-price equivalents, rallying to new highs in the FEB-JUN12 contracts.

Whey futures had a big week, hitting new highs across the board.

Contracts covering the first half of 2012 average 64.7¢, up 5.7¢ from a week ago, providing an additional boost to Class III values.

The November Class III price is $19.07, up $1.04 from October. Class III futures for 2012 average $17.12 (see chart). The November Class IV is $17.87, down 54¢. Class IV futures for 2012 average $16.94.

Meanwhile, the California 4b (cheese milk) price for November is $17.19, up $1.41 from October. The 4a (milk for butter/powder) is $17.70, down 59¢. Over the previous 20 months, the 4a had averaged $2.31 higher than the 4b.

NASS dairy product prices for the week ending 26 November: cheddar blocks $1.8886 (+6.47¢ vs. the prior week); barrels $1.9745 (+6.75¢); butter $1.6467 (-12.58¢); nonfat dry milk $1.4094 (-4.31¢); dry whey 64.29¢ (+0.14¢).

Further Reading