Fresh cheese was up for sale in Chicago today. Barrel sellers, in particular, came armed. Buyers stayed engaged, picking up 11 lots – the biggest single-day volume since mid-April. Cheese futures took a hit, with the September contract slipping more than two cents. Even with two consecutive declines in the cheese market, it still seems likely that US prices are a bit too lofty to compete internationally. Today’s stout April cheese export data offered a good reminder that competitive US prices can help move the needle on exports. Is the upswing in fresh barrel offers at spot perhaps an early sign that the trade winds are shifting?
In Chicago today, the butter market dipped to $3.0500 per pound, down $0.0450 with 1 lot trading. Meanwhile, chatter of more cheese availability seems to be ringing true. Blocks slipped to $1.8440 per pound, giving up $0.0150, with seven loads exchanged. Barrels, on the other hand, rose to $1.9550 per pound, tacking on $0.0100, with 11 lots sold.
April was another strong month for US cheese exports, with 102 million pounds shipped, up 27% year-over-year though down 7% from March. Mexico was yet again a big buyer, purchasing 38 million pounds, a 53% increase versus April 2023. Despite elevated prices, US butter exports saw some action in April, as well, with 5 million pounds shipped out, a 23% increase on the year and a 13% bump over March.
As summer heat rolls in, cow comfort is being tested across much of the US, cutting into milk production and availability. Spot milk prices in the Upper Midwest moved higher after the Memorial Day surplus was worked through, averaging $0.50 under class. That compares to -$3.25 last week, -$7.50 last year and the five-year average of -$2.65.
The corn and soybeans market had a nice recovery from yesterday’s poor close. Corn tacked on over 10 cents from sound export data, with the Mexican drought helping to keep the orders flowing. Soybeans likely experienced foreign end users hedging their risk as a new tax law came out in Brazil leaving soy processors confused about their cost of production and at what price they can afford cash beans at.
