After a decisively lower day yesterday, the Class III complex seemed to lack direction today. Prices started off soft this morning, recovered based on a stronger spot block cheese close. then ultimately settled lower for the day. News of 34% reciprocal tariffs from China had markets reeling, including the whey futures market, which was responsible for the weakness in Class III. Soybeans, cattle markets, energy markets and the stock market all saw major declines today, too.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Despite strong butter export news, the spot price dropped to $2.2950 per pound, 3.5 cents lower, with 11 loads trading. CME cheese markets were a little calmer to end the week. Spot blocks added a penny to close at $1.6400 per pound, while barrels were unchanged at $1.6600. Eight lots of blocks traded, bringing the week’s total to 47 and the year-to-date amount to 293, a new record. Three loads of barrels changed hands.
- According to USDA’s Dairy Products report, US total cheese production reached 1.115 billion pounds in February, down on the month and year-over-year. Combined NDM+SMP output also declined, totaling 177.4 million pounds, but NDM stocks shot up to 329.1 million pounds, well above prior-month and prior-year levels. Butter production reached 202.8 million pounds, lower compared to January, but up slightly versus 2024.
- Employers added more jobs than expected in March, with payrolls up 228,000. That was well ahead of +117,000 in February and predictions for +130,000. Meanwhile, unemployment rose to 4.2% versus 4.1% the previous month.
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.
