Spot butter traded 26 loads today, the most daily volume since March, as prices settled higher at $2.5100. Spot butter and futures have each moved higher since the April Cold Storage report came in under expectations. This Thursday, the April Dairy Products report and trade data are released, which should shine light on whether it was demand or production (or both) that led to tighter butter stocks. Cheese futures, after accounting for carrying costs and NDPSR/CME basis, are trading near parity to current spot market. Overall, trading activity was generally quiet to start the week, as the market waits for GDT tomorrow and big reports on Thursday.
Today’s Highlights from Ever.Ag’s Know Your Markets
- It was a busy day for the CME butter market. The spot price climbed 3.5 cents to $2.5100 per pound. Trading volume was heavy, with 26 loads changing hands. Spot blocks rose to a new year-to-date high of $1.9550 per pound, gaining $0.0075. Four loads traded.
- Second half butter futures advanced along with spot prices, closing at $2.7278 per pound, $0.0260 higher. Class IV also logged gains, with second half contracts settling at $19.90 per hundredweight, a 10-cent jump. In Class III, the July contract rose to $19.67 per hundredweight, tacking on 13 cents.
- Planting is nearing completion, with 93% of the corn crop in the ground, on par with the five-year average. Meanwhile, 69% of the corn crop was in good or excellent condition, ahead of 58% on the five-year average. Soybean planting is 84% complete, up from 76% last week and the five-year average of 80%.
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.
