Spot blocks regained yesterday’s losses, climbing to $1.9200 per pound, up three cents. But barrels continued to move lower, easing to $1.9075 per pound and shedding $0.0025. One load of each changed hands. The spot butter market also retreated, dropping $0.0225 to settle at $2.6550 per pound, with no lots trading.
After plunging yesterday, Class III futures reversed course. The December contract climbed to $20.58 per hundredweight and Q1 futures advanced to $20.01, each adding 14 cents. Other commodities were relatively quiet, with butter the other main mover. December butter futures dropped to $2.7100 per pound, three cents lower, while Q1 slipped to $2.7600 per pound, giving up $0.0183.
Europe’s cheese and butter remain the most expensive on the global market. EU cheese settled at $2.48 per pound this week, compared to New Zealand’s $2.13 and the US’ $1.94. EU butter prices have come down a bit from recent highs, but are still elevated globally at $3.74 per pound. In New Zealand, butter is $2.87 per pound, and the US price reached $2.69 (international prices adjusted to 80% butterfat). The story is flipped when it comes to milk powder. US NDM/SMP settled at $0.60 per pound, versus $0.51 in New Zealand and $0.41 in Europe.
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.
