Class III milk found some love today as spot whey started the auction with a climb, followed by cheese rounding the bend with strong bids for both blocks and barrels. Today’s USDA Milk Production report showed US output rose, as expected. California remained behind last year (-1.4%) but by the slimmest margin since October. June class III slipped off its limit up price of $19.70. But at $19.63, it is still in a great place for sellers to consider CME risk management tools or insurance coverage in the coming days.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot blocks regained all the ground it lost on Monday – and then some – jumping 3.5 cents to $1.9350 per pound. Two lots traded. Barrels climbed to $1.8625 per pound, $0.0275 higher, with no trades. The CME dry whey market ticked up a penny to $0.5350 per pound.
- US milk output climbed 1.5% year-over-year in April, in line with predictions and the largest annual increase since 2022. California production remained below prior-year levels (-1.4% on the year) as it recovers from HPAI, while the Southwest region saw the biggest jump (+6.7%). The dairy herd increased 5,000 head versus March, but due to USDA’s revisions, the actual report-to-report gain was 21,000 head.
- The CME NDM average price for the week is at parity with EU SMP: $1.23 per pound. New Zealand is still more expensive at $1.28 per pound. The US cheese average of $1.89 per pound remains well below New Zealand’s $2.27 and Europe’s $2.35. It’s an even more dramatic story for butter, with the CME average at $2.34 per pound compared to $3.46 in New Zealand and $3.65 in Europe.
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