Spot cheese remained under pressure today, with blocks and barrels dropping to 11-month lows. Class III futures are down again, with May taking the biggest hit, down 25 cents on the day. Butter saw some activity, trading six times before closing down three quarters of a cent. While the futures market seems intent on holding, the persistent selling pressure over the last week makes it increasingly difficult to maintain stability if this downward trend continues.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets continued to fall, with blocks tumbling seven cents to $1.5750 per pound and barrels shedding 5.5 cents to settle at $1.5700. Those are the lowest prices since April 2024. Two lots of blocks and one of barrels traded. Spot butter dipped below the $2.30-per-pound mark, closing at $2.2950, $0.0075 lower. Six loads changed hands.
- The decline in CME cheese continues to weigh on Class III futures. Q2 contracts slipped 19 cents to $17.04 per hundredweight, a new life-of-contract low. Q2 “all cheese” futures also lost ground, down $0.0223 to $1.7323 per pound.
- Powder prices eased while cheese and butter prices climbed at this week’s GlobalDairyTrade auction. SMP dipped 0.5% to $1.24 per pound and WMP declined 0.2% to $1.84 per pound. Meanwhile, cheddar and butter both advanced 1.2% to $2.26 per pound and $3.48 (adjusted to 82% butterfat), respectively. Mozzarella saw the biggest gain, up 5.1% to $2.13 per pound.
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.
