After an explosion of volume the last two weeks in spot trade, Monday was more subdued and, for the first time in a while, was green across most of the board. Cheese led the way, regaining some lost ground and returning to the upper-$1.60s. When the futures market opened Sunday evening, the cheese futures market saw continued selling pressure in front-month contracts. At the time, the macro futures markets were also facing extreme selling and it appeared to be carrying over into the dairy futures market. The sell off continued until the daily spot auction. While futures carry a premium to current spot pricing, futures pared losses and traded around unchanged most of the remaining session. From a spot and immediate forward basis, the US market is positioned to remain competitive in the export markets. Tariff discussions continue to roil the markets, leaving more questions than answers.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets rebounded a bit, with blocks up three cents to $1.6700 per pound and barrels rising to $1.6800, two cents higher. Three lots of blocks and one of barrels changed hands. Spot butter gained a half cent to settle at $2.3000 per pound, with three loads exchanged.
- Dairy futures markets were mixed today, with May Class III rising to $16.78 per hundredweight, adding six cents, while Q3 contracts slipped two cents to $17.80. On the grain side, nearby contracts rose. May and July corn advanced to $4.6450 and $4.7075 per bushel, up $0.0425 and 3.5 cents, respectively. May soybeans jumped six cents to $9.8300 per bushel, while July tacked on four cents to close at $9.9700 per bushel.
- According to USDA’s first Crop Progress report of the year, 2% of the US corn crop was in the ground as of April 6. That matches pre-report expectations and the five-year average. Spring wheat planting reached 3% complete, on par with the five-year average and slightly ahead of the consensus call for 2%.
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.
