CME barrel prices continued to decline, settling at $1.8650 per pound, down 1.5 cents, with one lot traded. At the same time, block prices ticked up to $1.9300 per pound, adding $0.0025, with10 loads exchanged. Butter came in at $2.6400 per pound, down a penny, with 30 lots sold.
Inflation in September was higher than expected, up 0.3% from August and +2.4% versus September 2023, compared to calls for +0.2% month-over-month and +2.3% year-over-year. Food-away-from-home prices rose 3.9% on the year, down slightly from +4.0% the month before. Grocery store price inflation jumped 1.3% on the year, the biggest year-over-year gain since November 2023.
Cream supplies are adequate, even as manufacturers prepare for the holiday rush. Midwest multiples came in at 1.32 this week, up from 1.31 last week but down from the five-year average of 1.34. Meanwhile, milk output across much of the country is stable. Despite reported plant maintenance, demand is strong enough that Midwest spot prices advanced to $2.00 over class, ahead of +$1.50 last week and well above of the five-year-average price of +$0.43.
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.
