As the first major day of the NCAA March Madness tournament kicked off on Thursday with heroes, upsets and Cinderella teams, markets had their own version. Block and barrel cheese once again were the heroes preventing Class III from declining below recent lows, as buyers have seemingly found value in the $1.60-per-pound range. Class III was still on upset alert despite stronger spot cheese and whey, as futures had trouble holding on to their early gains. Class III had been up 20-30 cents per hundredweight at one point, but ended closer to flat. Our Cinderella story of markets this week has been the whey spot market, recovering some ground after its steady fall over the last two months. Might there be a bit more gas in the tank for whey? Stay tuned for all the excitement!
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot blocks continued to regain ground, rising to $1.6200 per pound, 1.5 cents higher, with four loads exchanged. Spot dry whey gained another penny, closing at $0.4800 per pound, with one lot trading. Meanwhile, the CME NDM market moved for the first time this week, down a half cent to $1.1500 per pound. Two loads changed hands. Barrels and butter were both unchanged and there were no trades.
- Despite the uptick in CME blocks and dry whey, nearby Class III futures slipped, with Q2 contracts closing at $17.13 per hundredweight, seven cents lower. Q2 “all cheese” futures also eased, down $0.0110 to $1.7350 per pound.
- Cream remains historically abundant, but reports suggest it’s not quite as difficult to find a home for loads. USDA pegged multiples in the Upper Midwest at 108 compared to 105 the previous week and 124 last year and on the five-year average. Spot milk prices in the region also ticked up slightly to $1.00 per hundredweight under class, up from -$1.10 last week, -$1.50 in 2024 and -$3.45 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.
