Class III and cheese futures saw some convergence today but still hold a significant premium to the spot market. Spot blocks picked up a little less than a penny, while Class III futures dropped 15-20 cents but held in the $17-to-$18-per-hundredweight range across the board. Spot trading volume remains elevated as sellers – who seemingly have plenty of product to move – keep finding eager buyers on the other side. Buyers still appear to be finding value at these levels, likely supported in part by a still-strong premium to spot in the cheese futures market and solid export competitiveness.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets ticked higher, with blocks up $0.0075 to $1.6925 per pound and barrels adding $0.0175 to reach $1.7275. Nine lots of blocks and one of barrels changed hands. Butter backed off slightly from yesterday’s eight-month high, down a quarter cent to $2.6175 per pound, with no trades.
- Nearby Class III futures continued to drop. August and September contracts slipped to $17.91 and $18.56 per hundredweight, losing 23 and 21 cents, respectively. “All cheese” futures also declined, with August down $0.0120 to $1.8130 per pound.
- At this week’s GlobalDairyTrade Pulse auction, the WMP price declined to $1.74 per pound, down 1.3% versus Contract 2 at the latest main event. SMP also slipped, down 2.5% from the previous main auction.
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.
