Butter continues to excite buyers and sellers with another 35 loads traded. But that wasn’t enough to generate much action in Class IV futures, which were largely unchanged. Class III continued to slip on the heels of spot cheese. With the gap in the July futures chart, one could expect Class III to test near $18 per hundredweight before seeing much buying pressure. Tomorrow USDA releases its World Agricultural Supply & Demand Estimates report. Analysts largely expect continued declines in old-crop corn balance as exports remain strong. Extremely wet spring weather in some Eastern areas may result in prevent plant acres, cutting the national corn crop but potentially increasing soybeans. Watch out for increased grain price volatility in the next few days.
Today’s Highlights from Ever.Ag’s Know Your Markets
- It was another heavy trading day at the CME butter market, with 35 loads changing hands – the most in a single day since October. The spot price regained some of the ground lost yesterday, up 2.5 cents to $2.5300 per pound. Spot blocks shed two cents, closing at $1.8600 per pound, while barrels dipped to $1.8550 per pound, a half cent lower. Five loads of blocks traded.
- Despite recent increases in the spot price, US butter remains at a global discount. The CME average for the week so far sits at $2.53 per pound compared to $3.46 in New Zealand and $3.79 in the EU. The cheese average is also well below other global prices at $1.88 per pound versus New Zealand’s $2.16 and Europe’s $2.39. Milk powder prices are still tightly clustered. The CME average NDM price is $1.27 per pound while New Zealand’s SMP price is $1.27 and Europe’s is $1.26.
- Consumer prices continued to rise in May, but at a slower-than-expected pace. Inflation ticked up 0.1% month-over-month and +2.4% on the year compared to expectations for +0.2% and +2.5%. In April, prices advanced 0.2% on the month and +2.3% versus 2024. Grocery prices climbed 0.3% on the month and +2.3% year-over-year compared to -0.4% and +2.0% in April. Menu prices rose 0.3% versus April and +3.8% on the year versus +0.4% and +3.9% the month before.
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.
