The Class III market remains volatile due to ongoing uncertainty surrounding President Trump’s tariffs. Although we opened lower, Class III futures quickly rebounded following a report this morning that Mexico and the US reached a deal to delay tariffs until the end of the month. Why such extreme price action in Class III and cheese? Mexico is the largest export destination for US cheese by a large margin, accounting for nearly 40% of US cheese exports. Spot cheese closed lower, with both blocks and barrels seeing active trading. Butter and nonfat also closed lower, with Class IV following suit.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets continued to retreat, with blocks slipping 1.5 cents to $1.8625 per pound, while barrels dropped to $1.7900, two cents lower. Four lots of each changed hands. Spot dry whey also declined, down two cents to $0.6200 per pound, with two lots exchanged. In the Class IV space, prices barely dipped. Spot butter eased by a quarter cent to $2.4300 per pound, while NDM closed at $1.3400 per pound, giving up a half cent. Three loads of butter and seven of NDM traded.
- Class III futures were on a roller coaster with back-and-forth tariff news. The March contract ultimately closed at $19.62 per hundredweight, tacking on 31 cents. Class IV tumbled, with Q2 down 18 cents to $19.83 per hundredweight and the March contract at $19.80, 20 cents lower.
- In grains, nearby corn and soybeans both jumped at the prospect of delayed tariffs on Mexico. March corn advanced to $4.8875 per bushel, up $0.0675, while the March soybean contract climbed $0.1625 to $10.5825 per bushel.
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.
