CME activity was very quiet on Thursday in both the spot and futures markets. Spot butter, after significant volume on Wednesday, was once again the most active product as another eight contracts changed hands. The softness in butter continues to line up with anecdotal reports that butterfat levels are high and cream is available. Manufacturers are apparently taking advantage of cheap values to make product and have plenty to sell.
Today’s Highlights from Ever.Ag’s Know Your Markets
- It was a calm day in Chicago. Eight lots of butter changed hands in another decent trading session, but prices shed just a half cent to close at $2.4000 per pound. There wasn’t a lot of action in cheese, with blocks unchanged at $1.9200 per pound and barrels ticking up a quarter cent to $1.8300. The biggest mover of the day, spot dry whey, decreased to $0.5600 per pound, down just $0.0075.
- Milk flows in the Upper Midwest loosened a bit, with availability varying by region. USDA pegged spot milk prices at a midpoint of $1.00 per hundredweight under class, down from +$0.50 last week and last year, but up from the five-year average of -$3.35. Cream remains widely available, with multiples dropping to 111. That compares to 117 last week, 120 in 2024 and 122 on the five-year average.
- U.S. slaughter rates continued to decrease. For the week ending February 1, culling totaled 57,500 head, down 4.3% on the week and -4.2% year-over-year. The South (-13.6%) saw the biggest decline, while the Northwest (+9.7%) and Midwest (+7.9%) ticked higher.
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