Class III futures slammed lower today, erasing the week’s stronger activity following a weaker spot session. Declines weren’t isolated to the Class III market, with NDM, whey and butter markets all taking a hit as well. Second quarter butter futures, for instance, are now trading at the lowest levels since April, while second quarter NDM prices dipped below $1.30 per pound for the first time since August. It’s tough to pinpoint why exactly the dairy markets spilled lower today, but it seems possible that continued chatter from the Administration around trade/tariffs has market participants on edge.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot blocks remained at $1.8600 for the third straight day, while barrels slipped 2.5 cents to $1.7800 per pound. Two lots of blocks and three of barrels changed hands. Butter also continued its decline, dropping below the $2.40 mark for the first time since June 2023 and landing at $2.3800 per pound, two cents lower. Two loads traded. Spot NDM moved for the first time this week, dipping to $1.3300 per pound, down a penny, with two loads exchanged.
- Class III futures tumbled today, with the March contract falling 62 cents to end the week at $19.44 per hundredweight. March “all cheese” futures closed at $1.8530 per pound, shedding $0.0620. On the Class IV side, March butter dropped to $2.4400 per pound, down 3.5 cents, and March NDM slipped to $1.3025, $0.0155 lower. Q2 Class IV settled down 13 cents at $19.45 per hundredweight.
- According to the Bureau of Labor Statistics, US employers added 143,000 new jobs in January, down from +307,000 in December. BLS also revised its 2024 data, changing job growth from an average of +186,000 to +166,000 per month. Meanwhile, hourly wages ticked up 0.5% and unemployment came in at 4.0%, using a new population estimate.
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.
