Class III continued its move higher today amid continued strength in the spot market. Rumblings of a tight block market spread throughout the industry on the back of strong exports, driving cheese higher. Next week marks the start of the new FMMO pricing, when blocks will be all that matters. Historically, $1.90+ has been a price that starts to cut off demand from the aging programs and exporters. With spot milk still seemingly abundant, will we start to see some of that show up in the block market?
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME cheese markets continued to jump higher, with blocks approaching the $1.90-per-pound mark. Spot blocks gained a nickel to close at $1.8975 per pound, while barrels climbed to $1.8200 per pound, adding $0.0475. One lot of blocks and zero of barrels changed hands. Spot dry whey rebounded to $0.5450 per pound, two cents higher, with five loads exchanged. NDM also advanced, rising to $1.2275 per pound, tacking on $0.0125. Five loads traded. The CME butter market slipped to $2.3325 per pound, shedding a penny, with three lots changing hands.
- For the week ending May 3, slaughter rates overall remained below prior-year levels, totaling 45,000, down 8.2% year-over-year. The South (+13.2%) and Mid-Atlantic (+4.7%) logged increases, while the West (-17.4%), Northwest (-9.4%) and Midwest (-9.8%) declined.
- US retail sales totaled $724.1 billion in April, up 0.1% on the month and +3.1% versus 2024. The year-over-year increase was ahead of the +2.3% inflation rate and the strongest total since March 2024. Food services jumped 1.2% versus March and +5.2% on the year, the largest increase since September 2024. Grocery spending dipped 0.1% on the month, but advanced 2.7% year-over-year.
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