After a relatively quiet start to the week, Class III futures opened strongly this morning on good volume. That strength continued after spot markets traded higher. Although buyers won out, there was no lack of sell side either. Today’s action once again supported the ADPI Conference narrative that we might be stuck here for a bit. From a global perspective, $1.70 spot cheese is very attractive, but with more milk coming online for all the new cheese capacity, the ability to close the gap between US and global cheese prices might be difficult.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese continued to regain some lost ground. Spot blocks advanced to $1.7550 per pound, gaining 2.5 cents, and barrels climbed to $1.7350 per pound, 3.5 cents higher. Eight lots of blocks and two of barrels traded. Butter climbed back over the $2.30-per-pound mark, closing up 1.5 cents at $2.3100 per pound. Seven loads changed hands.
- Spring flush is in full swing, with strong milk flows in the Upper Midwest. USDA reported spot milk prices in the Midwest at a midpoint of $5.00 per hundredweight under class. That’s down from -$4.00 last week, -$1.50 in 2024 and -$3.75 on the five-year average. Cream is also still readily available. USDA pegged Central region Class II multiples at 115 compared to 120 last week, 123 last year and 119 on the five-year average.
- Slaughter rates remain well below prior-year levels. For the week ending April 19, culling was down 17.6% versus 2024. The biggest drop was in the West (-32.1%) followed by the South (-15.4%).
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