Much like the Philadelphia Eagles’ dominant Super Bowl victory, the cheese market put up a strong performance today, with blocks and barrels climbing higher in the spot session. The Class III forward curve followed suit, holding firm in the green, unlike a certain red team that crumbled when it mattered most. Outside of cheese, the rest of the dairy complex remained quiet, showing little to no movement. While the butter market was quiet, contacts suggested the cream market across the country continues to be very well supplied and trading at weaker-than-typical seasonal spot multiples. Low multiples plus the highest futures carry in several years should continue to incentivize bulk butter production.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets rebounded from last week’s losses, with blocks climbing to $1.9025 per pound, adding $0.0425, while barrels advanced to $1.8150, 3.5 cents higher. Six lots of blocks and four of barrels traded. The only other movement was in spot NDM, which shed a half cent to close at $1.3250 per pound. Zero loads changed hands.
- Class III futures jumped along with spot cheese. March and April contracts settled at $19.69 and $19.47 per hundredweight, respectively, each gaining 25 cents. March “all cheese” futures also rose, up three cents to $1.8830 per pound.
- It was a quieter day in grain futures after last week’s price swings. The March corn contract increased to $4.9150 per bushel, four cents higher, while March soybeans were unchanged at $10.4950.
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.
