It’s not very often that whey takes the lead story, but it’s had main character energy this week. Though spot prices held steady today, futures propelled higher with the March, April, and July contracts moving limit up. First quarter futures pushed up to $0.7110 per hundredweight on average, a nearly four-cent hike from yesterday. Reports continue to point to tight whey supplies as a key supportive feature. From a producer perspective, the jump in dry whey is lending a bullish hand to Class III futures as every penny move in whey equals six cents in Class III. First quarter Class III futures ticked slightly higher today to $19.12 per hundredweight despite a slump in cheese values.
Today’s Highlights
- After two days of gains, spot cheddar prices reversed course, with blocks settling at $1.6650 per pound, down 3.5 cents. Barrels also dipped to $1.6425 per pound, 2.5 cents lower. Three lots of blocks and two loads of barrels traded. The only other mover: spot NDM, which climbed to $1.3825 per pound, adding $0.0125. Eight lots were exchanged.
- US cheese exports remained robust in October, reaching 88.8 million pounds, up 12% year-over-year. Plenty of volume – 38 million pounds – shipped to Mexico, 27% more than the same period last year. On the other hand, exports of NDM+SMP dipped to 136.5 million pounds, 4% lower on the year. Butter exports totaled 5 million pounds, up 22% versus prior-year levels. But imports far outstripped outbound shipments, climbing to 19 million pounds, up 79% year-over-year.
- Dairy cow slaughter during the week ending November 23 reached 51,200 head, up 22.5% year-over-year. However, that compared to a weak 2023 performance, and activity remains well under the five-year average.
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