Today’s spot market showed mostly positive activity, with cheese prices making notable gains. The Q1 futures market responded positively, climbing nearly 30 cents on average. Whey prices, which recently reached their highest levels since March 2022, also played a significant role in supporting the Class III market. This is another opportunity to clean up the rest of your Class III Q1 DRP as it closes next Friday.
Today’s Highlights
- CME cheddar prices bounced back at today’s spot session. Spot blocks settled at $1.6700 per pound, $0.0325 higher, while barrels finished at $1.6500, up 4.5 cents. Three lots of each changed hands. Butter also moved upward to reach $2.5225 per pound, a gain of $0.0275, with six loads exchanged. On the other hand, CME spot NDM declined on the heels of a lower GDT SMP settlement. The market finished at $1.3750 per pound, down two cents, with four lots traded.
- Prices declined at the latest GlobalDairyTrade event, with the exception of WMP, which rose 4.1% to reach $1.81 per pound. SMP eased 1.2% to $1.29 per pound. Cheddar: $2.13 per pound (-3.0%), mozzarella: $1.87 (-4.5%) and butter: $3.03 (down 4.7%, adjusted to 82% butterfat).
- The increase in CME cheese gave Class III futures a bump. The January contract jumped to $18.78 per hundredweight, tacking on 42 cents, while February futures rose to $18.81, up 26 cents.
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