CME cheddar markets tumbled today. Blocks slipped to $1.8400 per pound, a nickel lower, while barrels dropped below the $1.90 mark to settle at $1.8600 per pound, down 6.5 cents. One lot of barrels changed hands and there were no block trades. Other markets were mostly quiet. Spot butter ticked up just $0.0025 to $2.7075 per pound, while NDM dipped $0.0075 to $1.3775 per pound. Zero lots of butter and five of NDM traded.
Nearby Class III contracts fell along with spot cheese, with November futures dropping to $20.12 per hundredweight, down 15 cents, and December declining to $19.46, 21 cents lower. Contracts in 2025 were more mixed.
Spot milk prices jumped higher this week as demand from bottling plants tightened supplies. USDA reported prices in the Upper Midwest at a midpoint of $1.75 per hundredweight over class, up from +$0.50 last week, +$1.00 in 2023 and +$0.40 on the five-year average. At the same time, cream multiples dropped lower. Contacts report cream supplies are loose and more than adequate to suit the needs of butter churns and cream cheese makers. USDA reported multiples in the Upper Midwest at 126. That compares to 129 last week and last year and the five-year average of 132.
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.
