Coming off Friday’s January Milk Production report, which was lower than expected, dairy markets largely moved lower this morning. Some spot markets moved into new recent lows: June 2023 for butter, July 2024 for whey and August 2024 for NDM. Milk output growth in new cheese production regions may be contributing to a healthy amount of cheese showing up. The cheese that was offered was met with some interested buyers. Class III futures responded by settling down a nickel and waiting to see whether bids or offers will become more aggressive going forward. Class IV futures felt pressure from the drop in butter as cream remains loose.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot butter dropped to a new 20-month low of $2.3700 per pound, shedding 4.5 cents. Two loads traded. The CME NDM market also dropped to a new lowest price of 2025, down 1.5 cents to $1.2250 per pound. CME blocks dipped back below the $1.90-per-pound mark, declining to $1.8800 per pound, two cents lower. Barrels ended the day unchanged.
- Second quarter Class IV futures slipped along with butter and NDM and settled at $18.87 per hundredweight, the lowest price since April 2024 and a loss of 16 cents. Class III was calmer, easing to $18.56, down a nickel.
- Nearby grain futures moved lower today, with March corn giving up $0.0875 to close at $4.8250 per bushel, while soybeans dropped 10.5 cents to $10.2900.
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