After what had been a pretty quiet month, the spot cheese market finished February with a thud. Spot blocks fell to tie the year-to-date low. In response, milk futures also pulled back, with Q2 Class III dipping to $18.17 per hundredweight, the lowest level since July. Heading into the weekend, markets are waiting to see what happens with the potential tariffs on Mexico and Canada – will they come into effect on Tuesday, or will they be averted yet again? So far, markets have held mostly steady, betting on another delay.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME blocks dropped out of their recent trading range, falling 9.5 cents to close at $1.7750 per pound. Barrels also declined, but at a slower pace, slipping to $1.7800 per pound, 2.5 cents lower. Four lots of blocks and two of barrels traded. Spot dry whey continued its own gradual descent, dipping to $0.5100 per pound, down 1.5 cents. Butter and NDM were both unchanged.
- The sharp drop in cheese carried over into Class III, with the March contract down 31 cents to $18.69 per hundredweight. “All cheese” futures also moved lower. March futures closed at $1.8240 per pound, decreasing by $0.0320.
- USDA’s Ag Outlook Forum news continues to have an impact on nearby grain futures. The March corn contract slid to $4.5350 per bushel, while soybeans fell to $10.1150, each giving up $0.1125 on the day.
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