After making small movements over the last two days, the CME barrel market resumed its downward trajectory and closed at $2.1200 per pound, $0.0325 lower. Blocks also declined, shedding two cents to finish the day at $2.0075 per pound. Five lots of blocks changed hands, and there were no barrel trades. Spot butter, meanwhile, dipped, climbed, then dipped again through the session, ending unchanged at $2.6800 per pound. Sixteen lots traded.
Class III futures also continued to slip, with the November contract down 48 cents to $21.83 per hundredweight. Q1 futures declined to $20.04 per hundredweight, losing nine cents. December Class IV futures dropped to $20.89 per hundredweight, 11 cents lower, while Q1 contracts settled at $21.06, giving up eight cents.
According to USDA, spot milk in the Upper Midwest is still a bit tight, but there’s plenty of cream to go around as component levels remain healthy. Spot milk prices reached a midpoint of $1.50 per hundredweight over class, up from $1.00 last week, +$1.13 in 2023 and +$0.78 on the five-year average. USDA pegged cream multiples at 131. That compares to 131 last week, 136 last year and 135 on the five-year average.
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.
