A lower-than-expected Milk Production report helped turn Class III milk markets green today, despite a lower spot cheese price session. Class III futures were up in a big way to start the day, with May trading as high as $18.80. Whey markets perked upward after some China trade war de-escalation while Class IV markets were quiet. Stories of spot export business have some searching for product and USDA’s Cold Storage report should help give the market direction after this recent cheese rally.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot dry whey jumped to $0.5000 per pound for the first time since last month, up $0.0225. Two lots traded. CME cheese markets slipped lower, with blocks down 1.5 cents to $1.7600 per pound and barrels shedding 2.5 cents to close at $1.7850. Two lots of blocks and one of barrels changed hands.
- The May Class III contract climbed to $18.65 per hundredweight, 28 cents higher, despite the decline in spot cheese. Q3 “all cheese” futures settled at $1.9030 per pound, losing a penny, while dry whey contracts advanced to $0.4951, tacking on $0.0233.
- US milk powder prices remain at a global discount. The average CME NDM price so far this week is $1.18 per pound compared to $1.27 in New Zealand and $1.25 in Europe. The gap is still much wider in cheese and butter. The average cheese price so far this week sits at $1.80 per pound, well below $2.23 in New Zealand and $2.45 in Europe. The US butter average dipped to $2.32 per pound while New Zealand butter remains at $3.40 and Europe ticked up to $3.78.
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