Today’s spot market witnessed another solid performance on the cheese front, with prices rising to the highest levels in more than a month. However, Class III milk futures lacked the upward momentum observed in recent sessions, suggesting a degree of caution among market participants. This hesitation could be attributed to the upcoming Milk Production report, scheduled for release this Thursday, which may provide critical insights and influence market direction.
Today’s Highlights
- The CME cheese markets’ journey upwards continues unabated. Spot blocks jumped to $1.8600 per pound, adding $0.0375 to reach the highest price since October. Barrels leapt to $1.7850 per pound, 5.5 cents higher. Seven lots of blocks and four of barrels changed hands. Meanwhile, butter continued to climb, up two cents to settle at $2.5200 per pound, with one lot exchanged. The decline in GDT milk powders didn’t have an impact on CME NDM, which ticked up a quarter cent to close at $1.3800 per pound. One load traded.
- Prices dropped across the board at the GlobalDairyTrade auction as China’s participation dropped 28.0% compared to the previous event. SMP dropped 3.2% to $1.25 per pound, while WMP slipped 2.4% to $1.76 per pound. Cheddar eased just 0.1% to $2.12 per pound, mozzarella declined 2.1% to $1.83 per pound and butter dipped 0.7% to $3.01 (adjusted to 82% butterfat).
- US consumers spent at a healthy rate in November, thanks largely to an increase in car sales. Retail sales totaled $724.6 billion, up 0.7% on the month and +3.8% on the year. Grocery sales dipped 0.2% versus October, but advanced 1.7% year-over-year. It was a similar story in the restaurant space, with spending down 0.4% month-over-month, but up 1.9% versus 2023. Lower interest rates and end-of-year sales bumped auto sales up 2.8% versus October and +7.0% year-over-year.
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