Class III milk futures were left red after the spot trade, where barrels dropped 2.5 cents off the $1.90 mark. However, blocks were able to find support and gain 2.5 cents, leaving the spot cheese average at $1.85. Both dry whey and NDM powder markets have stayed relatively stable despite Chinese tariffs. Stories of canceled orders for various goods have surfaced. That creates economic uncertainty, especially in the US Dollar Index, which has weakened considerably in recent weeks. A weaker dollar leaves the door open for potential export opportunities we need to remain balanced in an environment with a growing milk supply.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets diverged today. Blocks advanced to $1.8250 per pound, a 2.5-cent gain, while barrels found resistance at the $1.90 mark and slipped 2.5 cents to close at $1.8750. One lot of barrels changed hands and, for the first time this month, no blocks traded. Spot butter dipped to $2.3400 per pound, losing a penny, with eight lots exchanged.
- Not much has changed in global dairy product prices, with US remaining at a discount in most categories. So far this week, the CME average for cheese is $1.85 per pound compared to $2.23 in New Zealand and $2.46 in Europe. The US butter average of $2.35 per pound sits more than $1 below New Zealand’s $3.40 and Europe’s $3.74. For milk powders, the CME NDM average of $1.17 is still slightly less expensive compared to $1.27 in New Zealand and $1.23 in Europe.
- Retail spending leapt higher in March as consumers stocked up on big-ticket items ahead of tariffs and higher prices. Retail sales totaled $734.9 billion, up 1.4% month-over-month and +4.6% versus 2024, well ahead of inflation. Grocery spending ticked up 0.1% on the month and +3.7% year-over-year, while food services sales climbed 1.8% versus February and +4.8% on the year.
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