Dairy markets weren’t feeling the love today, with both Class III and Class IV mostly moving lower. In all, it was another rough week for the Class IV space, with Q2 prices down a dollar from the beginning of February. Butter and NDM continued to push lower as California milk production recovers. Cream is ample across the country so butter production should be strong. NDM has continued to roll over as high prices and a negative carry force product to the exchange. As markets head into a long weekend, participants wait to see what happens next week with Tuesday’s GDT while also keeping a close eye on the trade front.
Today’s Highlights from Ever.Ag’s Know Your Markets
- The spot butter market continued its descent and decreased to $2.3775 per pound, shedding $0.0225. CME NDM also lost more ground, dropping below $1.3000 per pound for the first time since August and closing at $1.2800, down two cents. CME barrels lost a little ground today, slipping to $1.8175 per pound, $0.0125 lower, while blocks were unchanged. Spot dry whey gave up a half cent to close at $0.5550 per pound, the lowest price since August.
- Class IV tumbled lower after the losses in spot butter and NDM. Q2 dropped to $19.01 per hundredweight, giving up 23 cents. Class III futures saw smaller declines, with the March contract down nine cents to $19.70 per hundredweight.
- Consumers spent less than analysts predicted in January. Retail sales totaled $723.9 billion, down 0.9% compared to December and the biggest monthly decline in almost two years. The total was up 4.8% versus a comparatively weak January 2024. Grocery spending rose 0.2% on the month and +3.9% year-over-year, while restaurant sales advanced 0.9% and +5.4%, ahead of inflation.
- Markets and Ever.Ag offices will be closed Monday in observance of Presidents’ Day.
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.
