The CME dairy market kicked off the week reacting to Friday’s post-close release of the June Cold Storage report. Butter futures climbed steadily throughout Monday, largely driven by lower-than-expected storage figures. The sharper-than-usual decline from May to June added bullish momentum, suggesting tighter supply. Meanwhile, Class III and cheese futures had a volatile session. Prices opened higher, dipped just before the cash session, then rebounded after spot cheese rose. Despite cheese inventories coming in above expectations, Class III and cheese also ended the day higher.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot butter started the week after USDA’s bullish June Cold Storage report by gaining 3.5 cents and closing at $2.5000 per pound. Two lots changed hands. The same report’s bearish cheese data didn’t have the same impact on CME cheddar. Spot blocks climbed to $1.6675 per pound, adding $0.0275, with one lot trading. Barrels were quiet, with no price movement and no trades. NDM ticked up a half cent to $1.2925 per pound, with no lots exchanged.
- Class III futures advanced, with the September contract up 24 cents to $17.79 per hundredweight and Q4 settling a dime higher at $18.28. Class IV also got a bump with the rise in CME butter. Q4 jumped to $19.57 per hundredweight, a 19-cent gain.
- US crops remain in positive shape according to USDA’s Crop Progress report. As of July 27, 73% of the US corn crop was in good or excellent condition compared to 74% last week and 63% on the five-year average. The soybean crop was 70% good or excellent, up from 68% last week and the five-year average of 62%.
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