The build up of cheese reported in the June Cold Storage report is certainly making itself known. Spot block cheddar showed up for sale again today, with another large trading volume of 15 lots. The spot price was relatively steady, but the heavy volume sent cheese futures through November slipping lower. Butter experienced a sell off, as spot values came lower and futures sold off an equal or greater amount. Butter has yet to rally off of last week’s more bullish Cold Storagenumbers. Live and feeder cattle continue to make new highs off of the bullish Cattle on Feed report.
Today’s Highlights from Ever.Ag’s Know Your Markets
- It was another busy trading day for CME blocks. While the price only rose a half cent to $1.6725 per pound, a healthy 15 loads changed hands. Barrels jumped to $1.6800 per pound, tacking on 4.5 cents, with no trades. Spot butter dropped back below the $2.50-per-pound mark, down three cents to $2.4725, with four loads exchanged.
- Class III dropped again, with September down 19 cents to $17.33 per hundredweight and Q4 11 cents lower at $18.03. It was a similar story in Class IV. The September contract tumbled 18 cents to $19.10 per hundredweight, while Q4 settled at $19.46, shedding seven cents.
- US milk powder remains slightly more expensive on the global marketplace. The CME NDM average sits at $1.29 per pound compared to New Zealand’s $1.26 and EU’s $1.22. The US cheese average of $1.67 per pound is still well below $2.08 in New Zealand and $2.35 in Europe. The gap in butter also remains, with the US at $2.49 per pound, New Zealand at $3.32 and the EU at $3.64.
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.
