The dairy complex was mostly green today as buyers stepped in to own. Spot cheese opened the week with a sharp reversal, bouncing back off last week’s drop. With multiple fundamental factors at play, the cash market is still working to establish where it belongs. Whey continued its recent strength, adding a half cent despite no trades. Class III futures started in positive territory and continued to push higher following the spot session. Butter also kicked off the week on a strong note after weeks of struggling to build momentum. Class IV futures managed modest gains, signaling some renewed support.
Today’s Highlights from Ever.Ag’s Know Your Markets
- After ending last week with a tumble, CME cheese markets jumped today. Spot blocks climbed to $1.8300 per pound, 5.5 cents higher, while barrels tacked on three cents to close at $1.8100. Four lots of blocks and three of barrels traded. Spot butter also regained lost ground, up $0.0325 to $2.3325, with eight loads exchanged. While the spot NDM price was unchanged at $1.2700 per pound, a healthy 16 lots changed hands.
- The September Class III contract leapt to $18.76 per hundredweight, a 42-cent gain, while Q4 rose to $18.20, adding 13 cents. September “all cheese” also advanced, up $0.0430 to $1.9080 per pound. Fourth quarter Class IV increased to $18.55 per hundredweight, a 20-cent bump.
- US crop conditions remain very healthy. USDA rated 71% of the US corn crop in good or excellent condition as of August 17 compared to 72% last week and 61% on the five-year average. Soybeans were 68% good or excellent, unchanged on the week and ahead of the five-year average of 62%.
