Class III milk futures saw modest gains today across the curve as spot remained relatively light. Class IV milk futures were largely unchanged amid stable but large butter spot volumes. Traders continue to monitor USDA data for direction, especially as seasonal heat could pressure milk output. Momentum remains favorable in Class IV as product markets offer firmer support with seasonal demand while cheese prices remain unpredictable.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Trading remains heavy in the CME butter market, with 23 lots changing hands today. That brought the week-to-date total to 98, just four short of last week’s volume. The spot price rose 1.5 cents to $2.5450 per pound. Spot blocks dropped another two cents and settled at $1.8400 per pound. Barrels gave up a half cent to close at $1.8500 per pound. Volume traded: one lot of blocks and zero barrels.
- With schools on summer break, milk demand is down, leaving more available for cheese plants. USDA reported spot milk prices in the Midwest at a midpoint of $4.00 per hundredweight under class, down from -$2.00 last week, -$1.50 last year and -$2.93 on the five-year average. Cream is still readily available. USDA pegged Class II multiples in the Central region at 123 compared to 124 last week, 132 in 2024 and 133 on the five-year average.
- USDA’s World Agricultural Supply and Demand Estimates report didn’t contain any major surprises. It was supportive for corn, with an increase in old-crop export expectations cutting US ending stocks. The report was neutral on soybeans. Ending stocks were only slightly below expectations. The July corn contract ticked up 1.5 cents to $4.3850 per bushel, while July soybeans slipped $0.0825 to $10.4225 per bushel. Futures through the rest of 2025 saw only slight movement.
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.
