Class III milk futures continued their strong momentum today, with blocks and barrels both posting gains with no offers appearing during the cheese session. This back-to-back strength bodes well for producers, as Q1 futures currently sit at $20.27 per hundredweight, with January contracts set to expire next week. Butter turned out to be the biggest mover and Q1 Class IV futures saw a slight decline, settling at $20.46.
Today’s Highlights from Ever.Ag’s Know Your Markets
- The spot butter market shed three cents to close at $2.5000 per pound, the lowest price of the year. Eight loads changed hands. CME cheese markets climbed higher with zero trades, with spot blocks up two cents to $1.8900 per pound and barrels settling at $1.8650, gaining 2.5 cents.
- Class III futures continued to rise. The February contract jumped to $20.39 per hundredweight, adding 44 cents, while Q2 futures settled at $19.45, 22 cents higher. Class IV declined alongside weaker butter values, with Q2 futures dropping to $20.21, a 20-cent loss.
- Milk powder prices jumped higher at this week’s GlobalDairyTrade Pulse event. SMP closed at $2,840 per metric ton, or $1.29 per pound, up 3.8% on a Pulse-to-Pulse basis and +5.3% compared to Contract 2 at the previous main event. WMP rose to $4,022 per metric ton, or $1.82 per pound, up 6.3% versus the most recent Pulse and +1.1% from the latest main auction.
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.
