A strong pinch is in order for dairy markets this Saint Patrick’s Day, with no green on the board. Poor customer sentiment readings are weighing heavy on stock and commodity markets, broadly. There was heavy sell pressure on spot cheese, returning most of the gains from last week. Butter suffered a similar fate, also shedding some of last week’s gains. Futures retreated and are now testing critical support levels, bringing opportunities to manage gains in existing positions.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets continued to lose ground. Spot blocks dropped to $1.6450 per pound, shedding $0.0475, while barrels tumbled 6.5 cents to $1.6250. One lot of blocks and three of barrels changed hands. Spot butter also dropped, settling four cents lower at $2.3025 per pound, with three loads exchanged.
- Class III futures declined along with spot cheese, with Q2 contracts falling 34 cents to $17.23 per hundredweight. It was a similar story in Class IV, with Q2 contracts down 14 cents to $18.15.
- U.S. shoppers increased their shopping just slightly in February after January’s steep drop-off. Retail sales ticked up 0.2% on the month and +3.1% year-over-year, less than expected. That compares to the inflation rate of +0.2% and +2.8%. Grocery sales rose 0.4% versus January and +4.3% on the year, while restaurant spending declined 1.5% month-over-month, but advanced 1.5% versus 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.
