# Class III milk price drops below $16

> Class III milk futures fell below $16 per hundredweight as cheese prices weakened, with cheddar blocks and barrels both down from early-September highs. Dry whey strengthened and cushioned the decline, and butter was roughly steady.

- Date: 2018-10-29 · published 2018-10-29T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/8226-class-iii-milk-price-drops-below-16
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Lower cheese values pull the Class III milk price down, which reduces the return on milk for dairy farmers and can ease pressure on dairy-based feed ingredients. Firmer whey partly offsets the drop.

## Read by commodity

- MILK: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| MILK | 2018-10-30 | 1 | -4.8% | -3.9 | Class III futures breaking below $16 on weaker cheese prices (cheddar blocks and barrels falling) shows the downward price pressure just before the 1-day drop ending 2018-10-30. |
| MILK | 2018-10-31 | 1 | -4.8% | -3.9 | Weakening cheese prices (blocks and barrels) pushed Class III futures below $16, which is the core driver of the downward trend and plausibly set up the further sharp drop on Oct 31. |

## Sources

- farmprogress.com: https://www.farmprogress.com/dairy-cattle/class-iii-milk-price-drops-below-16

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.