It was another high-volume day in spot cheese with 17 loads trading, bringing the week-to-date total to 61 loads. Being a steep discount to the rest of the world, we have clearly found a shelf-clearing price in the low-$1.60s. The million dollar question is how much cheese is still for sale? The Class IV complex was relatively quiet, with butter finding some support while nonfat futures were largely unchanged.
Today’s Highlights from Ever.Ag’s Know Your Markets
- Spot blocks were unchanged at $1.6100 per pound today, but trading remained heavy at 17 lots. Barrels ticked up a penny to $1.6375 per pound. One lot traded. The butter market ticked higher, up $0.0175 to $2.5375 per pound. Seven loads changed hands. Spot dry whey advanced a penny to $0.5775 per pound, with zero loads exchanged.
- While rising temperatures are starting to impact milk flows and component levels, plant downtime is keeping prices in check. USDA pegged spot milk prices in the Midwest at a midpoint of $4.00 per hundredweight under class, unchanged on the week and down from -$0.75 last year and -$3.45 on the five-year average. Class II multiples in the Central region reached 122, down from 123 last week, 132 last year and 135 on the five-year average.
- For the week ending June 14, slaughter rates remained below prior-year levels, but not dramatically so. Culling slipped 3.8% year-over-year. While rates rose in the Northwest (+7.4%) and South (+15.1%), they declined in the West (-13.9%), Mid-Atlantic (-5.5%) and Midwest (-4.7%).
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.
