The tariff pause set to expire this week has been extended to August 1. In the meantime, letters were sent to South Korea and Japan, key dairy and grain trade partners, indicating a 25% tariff would start next month. Butter was once again the driver in the spot market, moving to the highest level since November. Cheddar blocks remained unchanged, but the premium in Class III milk keeps eroding away with the lack of a strong rally higher in cheese to justify the prices.
Today’s Highlights from Ever.Ag’s Know Your Markets
Spot butter climbed to $2.6200 per pound, up 1.5 cents to the highest price since November. One load changed hands. CME cheese markets had a quiet start to the week, with blocks unchanged at $1.6850 per pound and barrels giving up a penny to close at $1.7100 per pound. Five lots of blocks and one of barrels traded. Spot NDM ticked up a quarter cent to $1.2625 per pound, with one lot exchanged.
Corn and soybean contracts tumbled amid favorable weather and anticipation for strong crops. The September corn contract fell to $4.0350 per bushel, down $0.1675, and August soybeans slid to $10.3150 per bushel, shedding 24 cents. With nothing in CME cheese to keep Class III futures elevated and prospects for lower feed costs, August Class III milk slipped to $18.14 per hundredweight, a 26-cent loss.
According to USDA, 74% of the US corn crop was in good or excellent condition as of July 6, up from 73% last week and well ahead of the five-year average of 64%. The soybean crop was 66% good or excellent, unchanged on the week and up from 62% on the five-year 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.
