Something has to give – the June pricing period is just a few days away. The June cheese futures contract is just shy of $1.92 per pound while spot blocks are only at $1.78. That gap will need to be filled eventually – either spot needs to move higher, futures lower or some combination of the two. Today’s action did little to narrow the divide with spot cheese unchanged and futures holding steady to slightly higher.
Today’s Highlights from Ever.Ag’s Know Your Markets
- It was a relatively calm day in Chicago with whey as the main mover. Spot dry whey slipped to $0.5300 per pound, $0.0125 lower, with one lot exchanged. Spot butter eased to $2.3425 per pound, shedding $0.0075. Two loads changed hands. CME cheese markets were unchanged, with no trades. NDM eased a quarter cent to $1.2075 per pound. Five lots traded.
- Milk powder prices at this week’s GlobalDairyTrade Pulse auction declined compared to last week’s main event. The WMP price slipped to $1.97 per pound, down 3.0% versus Contract 2 at the most recent main auction. SMP settled at $1.32 per pound, down 3.0% compared to Contract 2 at the latest event.
- Inflation was cooler than expected in April, with the Consumer Price Index up 0.2% on the month and +2.3% year-over-year. That’s the lowest yearly increase since February 2021. The Food-At-Home index declined 0.4% month-over-month, the biggest monthly decline since July 2020. But prices rose 2.0% year-over-year. Menu prices climbed 0.4% versus March and +3.9% on the year, the highest year-over-year rise since September 2024.
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.
