It was a relatively quiet week in the spot cheese market. Blocks traded within just a half-cent price range this week, the narrowest band in a year. Class III futures closed mixed today, though prices settled lower on the week. Class IV futures were steady to higher, boosted by an uptick in butter prices. Butter buyers seemed eager to find product today, with spot prices bouncing off the two-month low posted earlier this week. USDA released the latest Cold Storage report this afternoon after futures markets were closed, so those results will likely set the tone for trading next week.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot butter ended the week by jumping 4.5 cents to $2.4650 per pound, with two lots exchanged. After sitting unchanged all week, barrels shed 3.5 cents to close at $1.6250 per pound. Spot blocks dipped to $1.6400 per pound, a half cent lower. Eight lots of blocks and seven of barrels traded, the lowest total volume since mid-February. Spot dry regained some lost ground, rising to $0.5400 per pound, 1.5 cents higher. Six lots changed hands.
- USDA’s June Cold Storage report leaned bullish for butter, with stocks dropping to 354 million pounds, down 5.9% on the year and -2.8% month-over-month – twice the average May-to-June decline. Cheese was bearish. Total cheese inventories reached 1.412 billion pounds, down 0.4% year-over-year, but up 0.2% month-over-month at a time when stocks usually decline on a monthly basis.
- According to USDA’s July Cattle report, the number of dairy cows for heifer replacement was roughly unchanged versus July 2023 (there was no July report last year). The heifer-to-cow ratio was also unchanged at 45%.
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