After a week of trade war headlines, dairy markets started the week on a quiet note. What little action there was showed buyers willing to own NDM and cheese at these levels. Class III futures opened around a dime down with fears that last week’s headlines may continue. Last week, the U.S. dollar had the worst week-to-week performance since 1995 and that, combined with global dairy price premiums, should spark some export interest and support domestic prices.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME barrels dropped another 2.5 cents today, settling at $1.6050 per pound, the lowest price since December. Spot blocks gained some ground, rising to $1.6325, a penny gain. Five lots of blocks and one of barrels traded. The only other movement was in spot NDM, which ticked up a quarter cent to $1.1575 per pound, with three loads exchanged.
- Dairy futures didn’t see any major drops or increases today. Second quarter Class III declined to $17.37 per hundredweight, down a nickel to the life-of-contract low set last Thursday.
- Tomorrow brings USDA’s March World Agricultural Supply and Demand Estimates report. Analysts are predicting a small decrease in world corn ending stocks and a slight increase for soybeans. Ahead of that report, nearby corn futures lifted 3.5 cents to $4.5875 per bushel, while soybeans dropped to $9.9975, a 10.5-cent loss.
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.
