The cheese market rally in late September and early October nudged the October Class III price past $10 — a situation that is not likely to be repeated the rest of the year.
The USDA announced the October Class III price at $10.72 — an 80-cent increase from September. Although this marks the third straight month the Class III price has increased, it is probably the peak for the year. The Class III price is expected to slip back below $10 in November and December.
The Class II and IV prices also grew during October. The USDA announced the October Class IV price at $10.50 — 28 cents higher than September. The Class II price climbed 21 cents — to $11.12.
The cheese market has slipped back to the $1.00-range after enjoying a few weeks of favorable prices during late September and early October. At the close of trading on Nov. 1, block cheese continued to linger at $1.07 per pound — about 6 cents below the support price of $1.1314. Barrel cheese settled at $1.045 per pound on the Chicago Mercantile Exchange at the close of trading on Nov. 1.
At the close of trading on Nov. 1, Grade AA butter prices settled at $1.02 per pound. However, prices could soon head upward as a result of upcoming holiday promotions. That, in turn, could help move butter off retail shelves in the coming weeks.