Dairy futures markets saw little activity today despite more than a nickel jump in spot butter. Cheese finished marginally higher, sending futures slightly into positive territory. Cattle and equity markets declined following notice of retraction in US GDP for the first time since Q1 2022. USDA and Mexico reached an agreement to strengthen the protocols at the border regarding the new world screwworm outbreak, reducing livestock producers’ fears about the spread of this devastating pest.
Today’s Highlights from Ever.Ag’s Know Your Markets
- The CME butter market rebounded to $2.2950 per pound, a 5.5-cent gain, with four lots exchanged. Spot blocks also rose, up a penny to close at $1.7300 per pound. Five lots changed hands. Barrels eased to $1.7000, a quarter cent lower, with seven loads of barrels changing hands. Spot NDM decreased to $1.1750 per pound, shedding $0.0125. Eight loads traded.
- Class III gained some ground today, with the June contract up 13 cents to $17.37 per hundredweight. Butter futures were mixed, with only small movements, despite the jump in spot price. Meanwhile, the June NDM contract slipped to $1.2030 per pound, losing $0.0248.
- The relationship between US and global dairy prices is relatively unchanged. So far this week, the US CME cheese average sits at $1.72 per pound compared to $2.23 in New Zealand and $2.42 in Europe. The butter average of $2.26 per pound is far below New Zealand’s $3.40 and EU’s $3.76. The spread is a bit tighter in milk powders, with the US NDM average at $1.19 per pound versus $1.27 in New Zealand and $1.23 in Europe.
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.
