The volatile trading week for cheese continued today, with both blocks and barrels jumping higher. Class III prices responded positively by climbing through the first five months of the year. May was the leader, up 38 cents to $19.66 per hundredweight. Butter futures continue to feel pressure with front months giving up about 10 cents over the last few trading sessions. Given this is inventory building season with plentiful cream available, it doesn’t come as much of a surprise. While nonfat futures have given up a bit of ground over the last few weeks, spots continue to trade in a very tight sideways range.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot blocks regained most of yesterday’s losses, rebounding to $1.8900 per pound, adding $0.0675. Barrels also settled at $1.8900 per pound, tacking on a nickel. Six loads of blocks and one of barrels changed hands. The CME butter market continued its downward momentum, slipping to $2.5350 per pound, $0.0325 lower. Four loads traded.
- USDA released its Final Decision updating regulations for all 11 Federal Milk Marketing Orders. The new rules will take effect on June 1, 2025, with new skim milk factors following on December 1. Prices for June’s milk will be the first to use the new formulas. Outside legal challenges are possible, but not likely to cause any delays.
- Data indicated retail sales finished 2024 strong, with spending totaling $729.2 billion in December. That was up 0.4% on the month and +3.9% versus 2023. Grocery store spending also rose, up 0.9% month-over-month and +3.3% on the year. Spending at food services and drinking places dipped 0.3% versus November, but increased 2.4% year-over-year.
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