With today’s 1.5-cent decline, spot blocks are down about $0.30 from where they began the month and are approaching the lowest price tier of the last year. As spot pricing has moved lower, the forward curve has also slipped, but to a lesser degree. That has brought a sizeable carry into the forward markets. Maybe the lower prices are a sign that new manufacturing capacity has made a material step forward recently? Or did the US lose some export business on the last run into the $1.90s and sellers now must buy back business? On the export front, US prices are broadening the discount to competing prices around the world. EU mozzarella remains in the $2.20 area. We would imagine the US market should be back at the forefront of new export deals as the discount widens.
Today’s Highlights from Ever.Ag’s Know Your Markets
Spot butter was the only notable mover to start the week. The price climbed 2.5 cents to $2.5250 per pound, with three loads changing hands. Spot blocks slipped 1.5 cents to $1.6500 per pound on two trades, while barrels held steady at $1.6575 with no activity. NDM and dry whey were unchanged at $1.2600 and $0.5700 per pound, respectively, with no loads exchanged.
Class III futures continued to drop. The July contract tumbled 25 cents to $17.26 per hundredweight and Q3 settled at $17.84, a 21-cent loss. Despite the increase in the spot price, butter futures declined through December. Q3 contracts closed at $2.6441 per pound, $0.0226 lower.
As of June 22, USDA rated 70% of the US corn crop in good or excellent condition compared to 72% last week and 65% on the five-year average. Soybean conditions were unchanged on the week, with 66% good or excellent. The five-year average is 63%.
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