In the blink of an eye, $20 milk is gone and spot blocks, at one point an unexpected source of strength in cheese markets, have fallen from the $1.90s to the $1.60s. Cheese and butter are clear deals in the export space — but some traders indicate that tariff uncertainty has given them a reason to pause on what would normally be lucrative purchases. Market participants will have to watch the news for indications on where prices will go next. Will tariffs last, or will a deal be worked out?
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot butter regained a bit of lost ground today and advanced to $2.2825 per pound, gaining $0.0325, with one lot exchanged. CME cheese markets were also calmer after recent plunges. Barrels dipped to $1.7050 per pound, 2.5 cents lower, while spot blocks ticked up a penny to close at $1.6150. Five loads of blocks and two of barrels changed hands. Spot dry whey slipped to $0.4900 per pound, down two cents and below the 50-cent mark for the first time since July. Five lots traded.
- Class III futures followed CME cheese’s example, finishing the day mixed. The April contract tumbled to $17.34 per hundredweight, shedding a quarter, while contracts later in the year were in the green. April Class IV also dropped 25 cents, settling at $18.34 per hundredweight.
- After weeks as the most expensive, US milk powder is now cheaper than its competitors. The NDM average for the week so far is $1.18 per pound compared to New Zealand and Europe SMP at $1.24 and $1.20, respectively. US cheese and butter remain well below international prices.
Ever.Ag - The risk of loss trading commodity futures and options can be substantial. Investors should carefully consider the inherent risks in light of their financial condition. The information contained herein has been obtained from sources to be reliable, however, no independent verification has been made. The information contained herein is strictly the opinion of its author and not necessarily of Ever.Ag and is intended to be a solicitation. Past performance is not indicative of future results.
