# Why you should care about the block-barrel spread - Jacoby

> A dairy market podcast discusses chronically high milk supplies and a widening block-barrel spread. Class III prices are near $14, and Class I and fluid milk sales are weak even as exports remain strong.

- Date: 2018-11-01 · published 2018-11-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/8230-why-you-should-care-about-the-block-barrel-spread-jacoby
- Commodities: [Milk (Class III)](https://feedsoft.ai/c/MILK.md)

## Why it matters

Excess milk supply and weak Class III prices reduce returns for dairy farmers. Reduced milk output would be needed to lift prices, so the outlook for dairy-based feed demand stays soft.

## Read by commodity

- MILK: bearish ▼

## Sources

- jacoby.com: https://www.jacoby.com/why-you-should-care-about-the-block-barrel-spread-the-milk-check-011/

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