Last week, spot cheese began showing signs of strength. Today, it built on that momentum, with both blocks and barrels jumping higher. This surge is encouraging news for traders expecting a convergence between US and international cheese prices. Class III futures opened the day relatively flat, but after the spot cheese session, front-month contracts rallied, climbing as much as 40 cents. Butter also posted gains, but the powder market was mixed. With today’s momentum and tomorrow’s June trade data report, how much higher will prices go before they curtail demand?
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets started the week jumping to the highest prices since June. Spot blocks climbed 7.5 cents to $1.7800 per pound, while barrels advanced to $1.7500, a four-cent gain. One lot of blocks and zero of barrels traded. Spot butter also rose, up $0.0175 to $2.4625 per pound, with five loads exchanged.
- The increase in spot cheese carried over to the futures market. The September Class III contract shot up 37 cents to $18.11 per hundredweight, while Q4 futures leapt to $18.41, 26 cents higher. “All cheese” futures also gained ground, with Q4 tacking on 3.5 cents to settle at $1.8907 per pound.
- As of August 3, 73% of the US corn crop was rated good or excellent, unchanged on the week and well ahead of 63% on the five-year average. USDA pegged the soybean crop at 69% good or excellent, down slightly from 70% last week, but up from 62% on the five-year average.
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.
