Most of today’s CME action was in butter and NDM. Butter futures eased but maintained their premium to spot, which also took another step down. Meanwhile, NDM found plenty of buying interest, trading eight truckloads. Class III futures moved lower, with no clear direction from today’s spot auction. Tomorrow brings USDA’s June Milk Production report, which could drive the market through the rest of the week.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot NDM gained a penny, reaching the $1.30-per-pound mark for the first time since February. Eight lots changed hands. The CME butter market slipped to $2.5000 per pound, $0.0125 lower, with four lots exchanged. Spot dry whey ticked up a half cent to $0.5625 per pound. Blocks and barrels were unchanged at $1.6425 and $1.6600 per pound, respectively, with no trades.
- Futures markets didn’t see any big fireworks today. The August Class III contract dropped to $17.63 per hundredweight, a 14-cent loss, while August “all cheese” declined $0.0180 to $1.7980 per pound. Butter contracts also dipped. August futures closed at $2.5695 per pound, down $0.0140, and Q4 settled at $2.6449 per pound, shedding $0.0074.
- USDA pegged the US corn crop at 74% good or excellent, unchanged on the week and ahead of the five-year average of 64%. The soybean crop was 68% good or excellent, down slightly from 70% last week but still above 61% 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.
