The fallout from the financial crisis on Wall Street continued to batter cheese markets yesterday, with blocks of cheddar dropping 12.75¢/lb and barrels down 14¢. Blocks closed at $1.8050/lb. and barrels finished at $1.77/lb.
Fourth quarter Class III futures dropped another 30¢/cwt today, following a 60¢/cwt freefall yesterday. The 2009 Class III futures dropped an average of 20¢/cwt today as well.
Feed prices also declined. December corn dropped another 47¢/bu today to $4.87. And soybeans dropped 49¢/bu to $10.45.
Scott Stewart, a market analyst and president of Stewart-Peterson, West Bend, Wis., told Dairy Today yesterday that corn could drop another 50¢ to 60¢/bu in the coming days. It might not stay there very long, but in these emotionally-driven markets, they could be brief periods of opportunity to lock in better prices, he says.