Tarriff talk continues to drive conversation as we learn new details every day. While markets responded positively to yesterday’s news of delays, continued pressure on China leaves the future of dairy prices up in the air. Trade was relatively quiet in Class III and IV, with most of the curve floating around unchanged on light volume despite strong buying on the spot market. In a market that can change with a social media post, fundamentals still point to more milk and more product.
Today’s Highlights from Ever.Ag’s Know Your Markets
- After a relatively quiet first half of the week, CME butter volume picked up the pace, with 24 loads changing hands. The spot price gained two cents to close at $2.3325 per pound. Spot blocks jumped to $1.7400 per pound, adding $0.0325, while barrels ticked up to $1.7800 per pound, $0.0075 higher. Nine lots of blocks and four of barrels changed hands.
- USDA’s April World Agricultural Supply and Demand Estimates report leaned bullish for corn, with both US and world ending stocks below expectations. Forecasts for US and global soybeans were more neutral and didn’t change much from March’s report. Post-report, corn and soybean futures climbed across the board.
- Inflation cooled slightly in March, with prices down 0.1% on the month but up 2.4% year-over-year compared to +0.2% and +2.8% in February. Grocery prices got a bit more expensive. The food-at-home index advanced 0.5% month-over-month and +2.4% on the year. In February, grocery prices were flat on the month and +2.4% compared to 2024. Eggs came in at $6.23 per dozen, a new record and up 108% year-over-year. Restaurant prices ticked up 0.4% versus February and +3.8% year-over-year, virtually unchanged from +0.4% and +3.7% the previous month.
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