It was a relatively quiet day in the markets – Class III opened strong, then came under pressure, and futures ultimately finished the day mixed. Butter and NDM saw similar trends – with some prices up, others down, and many unchanged. The market was waiting to see the latest data from USDA’s Milk Production report, which was released after markets closed this afternoon and leaned bearish.
Today’s Highlights from Ever.Ag’s Know Your Markets
- The CME butter market ticked up just slightly to $2.3025 per pound, adding $0.0075, but volume was heavy with 15 loads changing hands. The biggest price move was in dry whey, which jumped two cents to close at $0.5000 per pound, with two lots trading. Spot blocks resumed their downward trajectory, slipping to $1.6025 per pound, $0.0175 lower. Nine lots traded. Barrels also declined, shedding 1.5 cents to close at $1.5500 per pound, with six lots exchanged. Spot NDM eased another half cent to $1.1450 per pound. Nine loads changed hands.
- Futures markets had a tame day ahead of USDA’s Milk Production report. Q2 Class III dipped to $17.07 per hundredweight, a five-cent loss. Class IV contracts were unchanged through 2026.
- US milk output rose 1.0% year-over-year in February when adjusted for leap year last year, ahead of expectations and the biggest increase in 24 months. California continued to recover from HPAI, with production down 3.7% compared to -5.3% the previous month. The dairy herd added 15,000 head to reach 9.405 million cows, the largest herd since May 2023.
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.
