Sellers came armed with cheese today. Prices didn’t retreat too much, but the futures market seemed spooked by the steady stream of offers. Class III and “all cheese” futures were down some ahead of the session but fell dramatically in the aftermath, with both July and August Class III touching the 75-cent limit down mark. By settlement, futures clawed back some off the lows, with Q3 Class III losing 29 cents for the day. A lackluster GlobalDairyTrade event may have also soured the mood some – most evident in the NDM space where spot lost a penny and futures closed a bit lower across the board after the GDT SMP contract slipped slightly.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets slipped, with barrels down three cents to $1.8400 per pound and blocks shedding $0.0175 to close at $1.9375. Five lots of barrels and eight of blocks changed hands. Butter dipped to $2.5000 per pound, a penny loss, with four loads exchanged. Spot NDM also gave up a penny, closing at $1.2775 per pound, with three lots trading.
- Like spots, futures markets were mostly in the red today. The July Class III contract tumbled to $19.22 per hundredweight, losing 45 cents. July “all cheese” futures decreased to $1.9670 per pound, $0.0390 lower. Butter also moved lower, with the July contract closing at $2.5803 per pound, giving up $0.0438.
- Milk powder prices continued to decline at this week’s GlobalDairyTrade event. WMP dropped 3.7% to $1.89 per pound, while SMP eased 0.4% to $1.27. The biggest mover was cheddar, down 5.0% to $2.16 per pound.
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.
