Spot NDM hit a new year-to-date high, gaining 1.5 cents to settle at $1.4050 per pound, with 17 loads exchanged. The CME dry whey market also jumped again, supported by tighter stocks and ongoing high protein demand. Spot prices added $0.0325 to reach $0.6550 per pound, a level last seen in March 2022. Four loads traded. Meanwhile, spot blocks shed $0.0325, moving lower to $1.6575 per pound, while barrels eased to $1.6725 per pound, down three quarters of a penny. One lot of blocks and zero of barrels changed hands. Butter tumbled to $2.6000 per pound, three cents lower, with three lots exchanged.
Class III futures tumbled along with spot block prices, with the December contract dropping to $18.44 per hundredweight, 22 cents lower. First quarter futures closed at $18.81, a nickel lower. The “all cheese” December contract also decreased, settling at $1.7530 per pound, down $0.0310.
Spot milk prices dropped amid favorable weather and feed conditions in the Upper Midwest. USDA reported more milk is coming online ahead of new plant openings, leaving some milk without a home in some regions and leading to a wide price spread of -$3.00 to +$3.00. Overall, spot prices slipped to an average of “flat class. That compares to +$1.75 last week, +$0.63 in 2023 and -$0.08 on the five-year average. But in the Upper Midwest, the midpoint was +$1.75, closer to the historical average.
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.
