It was a doozy of a trading day in the Class III market. Prices started the day continuing to march higher but retreated mid-morning. And while spot cheese moved higher today, it wasn’t enough to support the already lofty futures market premiums. So, by lunchtime in the Midwest, the screen looked a lot different, as heavy sell-side stepped in. September Class III contracts dropped back by at least 15 cents on the day, but prices still settled at a premium to last Friday’s levels.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets ended the week on a high note. Spot blocks climbed to $1.9300 per pound, up $0.0325, with 16 lots traded. Barrels reached $1.8800, six cents higher, with one lot exchanged. Spot butter was up just a penny, closing at $2.3425 per pound, with 10 lots traded. NDM ended the week at $1.2250 per pound, down $0.0025, with five loads exchanged.
- June Class III contract slid to $19.14 per hundredweight, 24 cents lower. June Class IV was unchanged at $17.70. Grain futures dipped to finish the week, with July corn at $4.4350 a bushel, down a nickel. Soybeans closed a penny lower at $10.5025 a bushel, while soybean meal settled at $292.10 a ton, down $4.50.
- The University of Michigan Consumer Sentiment preliminary reading for May slipped to 50.8, the lowest since June 2022 and the second-lowest reading on record. This was down from April’s reading of 52.2. Consumers’ expectations for year-ahead inflation rose to 7.3%, up from 6.5% last month, and long-term inflation expectations bumped up to 4.6% from 4.4%. Most of the survey, though, was completed prior to the US and China announcing a 90-day pause on steep reciprocal tariffs.
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.
