Spot prices dipped today following yesterday’s bearish Milk Production report. Barrel prices dropped to $1.9100 per pound, down seven cents, and blocks slid to $1.8900 per pound, shedding three cents. Butter gave up ground as well, settling at $2.6775 per pound, a 5.25 cent decline, and NDM prices eased to $1.3600 per pound, down 2.75 cents.
August milk production in the EU and UK eased 1.7% year-over-year, due in part to increased cases of Bluetongue and unseasonably warm temperatures. Output dropped 5.4% on the year in both Germany and Italy, while production in the Netherlands declined 3.9%.
Milk futures followed the spot market lower, with fourth quarter Class III contracts settling at $21.18 per hundredweight, down 40 cents, while Q4 Class IV prices dropped to $21.02 per hundredweight, giving up 14 cents.
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.
