Returning from the extended holiday weekend, dairy markets opened the week on a bearish note. Block cheese prices slipped amid lower offers, while barrels maintained steady offers. But both lacked sufficient bids to offset the decline, and prices moved lower. The butter market also faced challenges, reacting adversely to last week’s Cold Storage report, which revealed a substantial accumulation of inventory. This surge in supply also drove butter futures downward, eliminating the profitability of carry trades across the futures curve. With the trading week shortened by the holiday, it remains to be seen whether markets can recover lost gains or if they will continue the current trend of softening prices
Following the Cold Storage report of bearish butter stocks, spot butter plummeted today to $3.0025 per pound, losing 12 cents, with three lots traded. Blocks also dipped to $1.8625 per pound, down $0.0075. Meanwhile, barrels held steady at $1.9800 per pound. No blocks and barrels were exchanged.
June to December butter futures settled limit down (-7.5 cents) on the day. Third quarter contracts dipped to $3.0895 per pound. Q3 Class III futures also declined $19.58 per hundredweight, giving up 40 cents since last Friday’s trade.
Ideal conditions encouraged rapid planting progress. The week ending May 26 saw corn planting advance to 83% complete, just behind last year’s crop, which was 89% planted by this time. Soybean planting is now reportedly 68% finished, yet it is still well behind last year’s crop which was 78% planted at this time.
