Despite contacts suggesting that there is cheese out there for sale, CME spot cheese had a strong day. Class III futures remain volatile, jumping higher today after a strong spot showing. With that being said, new cheese capacity has come online and is expected to continue to increase the amount of cheese that is for sale in the private market. Demand has been strong for raw milk to fill these plants as indicated by spot milk prices rebounding over class after the holidays.
Today’s Highlights
- Spot blocks rebounded from last week’s losses, jumping to $1.9100 per pound, nine cents higher. Barrels also advanced, adding three cents to reach $1.8800 per pound. Three loads of blocks and two of barrels changed hands. The CME butter market saw heavy trading volume, with 16 lots exchanged. Spot prices ticked up to $2.6125 per pound, gaining $0.0125.
- Class III futures rose on the heels of CME cheese, with February and March contracts settling at $20.60 and $20.27 per hundredweight, up 33 and 31 cents, respectively. “All cheese” futures also gained ground. The February contract lifted to $1.9000 per pound, three cents higher, while March increased to $1.8870, gaining $0.0380.
- The impact of Friday’s bullish WASDE report continued to today’s session in the grain complex. March soybeans shot up to $10.5300 per bushel, adding nearly 28 cents. March corn advanced to $4.7650 per bushel, ticking up six cents.
