CME butter trading got off to a much slower start after last week’s record-setting volume. Only three lots changed hands. But the spot price leapt to $2.7300 per pound, seven cents higher. CME barrels gave up some of last week’s gains, slipping back below the $2 mark. Prices dropped to $1.9800 per pound, shedding three cents, while spot blocks eased to $1.9200 per pound, a half cent lower. Three lots of blocks and four loads of barrels traded.
In its September Milk Production report, USDA pegged U.S. milk output at 18.2 billion pounds, up 0.1% year-over-year and ahead of expectations. USDA also revised August’s numbers from -0.1% to +0.4%. Heat and the beginnings of HPAI seemingly had little impact on California’s production, which was flat on the year. But the virus’ spread and resulting cut in milk production seems to be increasingly severe during October. US cow numbers were unchanged on the month and down 38,000 versus 2023.
In New Zealand, September milk output jumped 4.1% year-over-year on a tonnage basis, the largest annual increase since September 2020. On a milk solids basis, production climbed 5.2% on the year. Season-to-date, totals are up 5.6% in tonnage and +6.5% in milk solids.
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.
