Futures were pressured lower after a less-than-impressive cash cheese market, despite the strong buy-side interest in Class III futures pre-cash. The first quarter settled under $20.00 per cwt, but remains at elevated levels when comparing prices experienced only 10 trading sessions ago. Butter prices impacted Class IV futures as sellers are still pushing the cash market to lows not experienced since December 2023. Both Class III and Class IV prices still offer good opportunities for last-day Q1 DRP coverage.
Today’s Highlights
- After spending the week gradually easing lower, the CME butter market tumbled six cents to close at $2.4650 per pound. Eight lots traded. Spot dry whey continued its upward climb, pushing closer to the 80-cent mark and settling at $0.7925 per pound, up 2.5 cents. Five lots traded. Blocks also climbed, adding $0.0125 to reach $1.8000 per pound, with two loads changing hands. But barrels eased slightly to $1.7275 per pound, down a quarter cent, with one lot exchanged.
- Even with spot blocks and whey climbing higher, Class III futures dropped, with Q1 contracts slipping to $19.88 per hundredweight, shedding 27 cents. Class IV also tumbled, settling down 20 cents at $20.60 per hundredweight.
- Corn futures have shaken off any bump from USDA’s bullish WASDE report earlier in the week. December futures eased to $4.3000 per bushel, down $0.0175 on the last day of the contract. March slipped to $4.4200 per bushel, 1.5 cents lower. Soybeans also declined. The January contract decreased to $9.8825 per bushel, giving up 7.5 cents.
