Cheese
Class III milk futures continued their strong momentum today, with blocks and barrels both posting gains with no offers appearing during the cheese session.
The U.S. dairy industry faces a pivotal moment as it contends with both gripping challenges and promising prospects amidst fluctuating global market dynamics.
It’s pretty safe to say that the Class III market direction remains unclear.
The market appears to be grappling with uncertainty around Class III prices, particularly as we approach a critical day tomorrow with the release of the Milk Production and Cold Storage reports.
After the three-day weekend, spot cheese prices reacted with a series of offers that pushed the entire Class III forward curve downward.
Volatility in futures is one thing but volatility in the spot market is another. The volatility in the futures market is difficult to predict, but volatility in the spot market makes it impossible to predict.
And then there was quiet. After a week of see-saw action in the spot cheese market, Friday’s CME cheddar prices finished unchanged
The volatile trading week for cheese continued today, with both blocks and barrels jumping higher. Class III prices responded positively by climbing through the first five months of the year.
Class III markets took a breather after yesterday’s extreme lower move to check in with spot markets.
Class III futures rose on the heels of CME cheese, with February and March contracts settling at $20.60 and $20.27 per hundredweight, up 33 and 31 cents, respectively.
It was a rough day for dairy producer margins, as milk prices came under pressure while grain prices rallied.
Despite the decline in CME blocks, nearby Class III contracts ticked higher. February and March futures rose to $20.92 and $20.59 per hundredweight, tacking on six and eight cents, respectively.
Looking back on the past year, we see price improvements in all categories.
The Class III market ended the week on a positive note, settling higher through most of the first half.
Class III futures started off the new year with a pop this morning.
On the heels of the CME cheese jump, the January Class III contract climbed to $20.43 per hundredweight, tacking on 31 cents.
Following a slow performance in the spot market yesterday, today’s trading saw a bit more activity ahead of the early market close.
Class III futures turned red today on the heels of a quiet spot cheese session.
Today’s spot market witnessed another solid performance on the cheese front, with prices rising to the highest levels in more than a month.
Schrieber Foods announced that it is making a major investment to its existing plant in Carthage, Missouri.
Class III futures continued to climb, taking the lead from the spot cheese markets.
Supported by upward momentum in spot cheese and whey, Class III and cheese futures jumped.
Some recovery in Class III futures has come just in time for the Q1 2025 DRP deadline on Friday.
Dry whey prices remain buoyant, rising to 73 cent per pound.
Whey led the rally in Class III last week and came out of the gate strong with bids this morning, giving Q1 Class III futures contracts an early pop back over $19.50.
It’s not very often that whey takes the lead story, but it’s had main character energy this week.
CME cheddar markets continued yesterday’s climb. Blocks advanced to $1.7000 per pound, adding three cents, while barrels rose to $1.6675, $0.0175 higher.
Per capita consumption of dairy products reached 661 lbs. per person in 2023, an all-time high.
Today’s spot market showed mostly positive activity, with cheese prices making notable gains.
CME cheese markets continued to lose ground, with both blocks and barrels reaching the lowest levels since April.