Today’s dairy markets saw some mixed trading in the Class III complex. Cheese futures experienced strong activity, posting gains across the forward curve. In contrast, dry whey remained unchanged in a brief session, though declining futures suggest plenty of supply. On the Class IV side, butter continued to see steady trading volume, with futures gaining further support. News of strong milk solids production out of New Zealand may put downward pressure on powder globally. Tomorrow’s Milk Production report could also pressure powder lower if California shows decent recovery from HPAI.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME barrels continued to drift lower, slipping below the $1.80 mark to close at $1.7850 per pound, down $0.0225. Spot blocks ticked up a quarter cent to reached $1.9000 per pound. Three lots of each traded. Butter gave up some of yesterday’s gains, settling at $2.4225 per pound, a loss of $0.0175, with six loads exchanged. And NDM shed two cents to end the day at $1.2500 per pound, while one lot changed hands.
- Spot milk availability is variable by region. USDA reported prices in the Upper Midwest at a midpoint of $0.88 per hundredweight under class compared to flat class last year and -$2.25 on the five-year average. Cream is still abundant, with multiples in the Upper Midwest and East unchanged on the week at 111 and 105, respectively. West multiples jumped to 93 versus 83 last week, but are still well below the five-year average.
- New Zealand’s January milk output jumped 5.0% year-over-year on a milksolids basis, well ahead of predictions for +0.8%. It was the biggest January output since 2021 and brought the season-to-date total to +3.9%. On a tonnage basis, production increased 2.6% versus 2024 and the 2024-25 season is now +3.1% on the year.
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.
