Barrels continued to rise, reaching $2.6225 per pound and tacking on 5.75 cents to set yet another record-high price. At the same time, blocks slid to $2.2450 per pound, giving up 3.25 cents. Spot butter declined to $3.0050 per pound, eight cents lower to the lowest price since May, even as EU values rose to $4.06 (adjusted to 80% butterfat).
Q4 Class III prices slipped to $22.69 per hundredweight, losing 36 cents, despite the increase in barrel prices. Class IV futures were dragged down by lower spot butter prices, dipping to $22.20 per hundredweight, 31 cents lower.
The U.S. Federal Reserve announced a rate cut of 0.5% (50 basis points), its first benchmark interest rate cut in more than four years. The committee also plans to decrease rates twice more before the end of the year.
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.
