Spot cheese continues to feel supported in the $1.60s and futures are still trading at a premium to current spot price. Given the time of year, it feels like spot may go test the $1.75-$1.80 level soon, even with last week’s bearish Milk Productionreport. The Class III August-September spread continues to be the driving force of volume, with over 665 loads traded. Open interest volume is telling us short positions are getting rolled from August to September.
Today’s Highlights from Ever.Ag’s Know Your Markets
- There wasn’t much action in Chicago today. The only price movement was in spot blocks, which gained a penny and closed at $1.6825 per pound. Spot NDM saw the only trades, with two lots changing hands.
- Spot milk prices dipped lower again. USDA pegged prices in the Midwest at a midpoint of $0.50 per hundredweight under class, down from “flat class” last week and +$0.75 last year, but up from -$2.20 on the five-year average. Class II multiples in the Central region declined to 127 compared to 129 last week, 134 last year and 136 on the five-year average.
- For the week ending July 19, dairy cow slaughter totaled 51,100 cows, down 2.1% year-over-year. West (-26.2%) and Mid-Atlantic (-14.3%) logged decreases, while culling rates increased in the South (+44.8%), Northwest (+12.5%) and Midwest (+5.1%).
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.
