Spot cheese pushed higher yet again today. With the May pricing period now underway and futures starting the week at a discount, May cheese and Class III contracts rallied to bridge the gap. Reports around the market are mixed – perhaps export business was booked a few weeks ago when cheese was in the $1.60s, helping to clean up the market? However, that is balanced against reports of extra milk in key cheese-producing regions such as Idaho and accounts of spot milk trading at steep discounts, keeping plants full.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME barrels jumped six cents to reach $1.9000 per pound for the first time since October 2024. Spot blocks also climbed, up three cents to $1.8000 per pound. Seven loads of blocks and one of barrels traded. The CME butter market ticked up just a quarter cent to $2.3500 per pound, but trading volume was heavy at 19 loads. Spot dry whey added a penny to settle at $0.4750 per pound, with two loads exchanged.
- Class III contracts took another big step higher, with May up 44 cents to $18.08 per hundredweight and Q3 rising to $18.21, a 14-cent gain. The jump in spot cheese also drove May “all cheese” to $1.8350 per pound, a four-cent increase.
- Milk powder performance was mixed at this week’s GlobalDairyTrade event. SMP dipped 2.8% to $1.27 per pound, while WMP advanced 2.7% to $1.89 per pound. Cheddar declined 1.9% to $2.23 per pound and butter ticked up 1.0% to $3.48 per pound (adjusted to 82% butterfat).
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.
