A record with spread between Class III and Class IV prices. This is the result of a substantially lower butter price in relationship to cheese prices.
Milk powders hit a bit of a stumble Monday after a freight train run higher over the last few weeks. Whey took a plunge in the spot trade, but butter and cheese kept the rally running in Class III milk and support in Class IV. We finished the day with January Class III and Class IV narrowing the spread to 30 cents, with both over $20 per hundredweight.
Today’s Highlights
- After closing in on 80 cents per pound last week, spot dry whey started this week by tumbling to $0.7450, shedding $0.0475. That was the biggest single-day drop since April 2022. Six lots traded. The CME butter market rebounded, jumping to $2.5000 per pound, a 3.5-cent gain, with 10 loads exchanged. Spot blocks continued to climb, settling at $1.8225 per pound, $0.0225 higher, while barrels ticked up just a quarter cent to $1.7300. Volume traded: four lots of blocks and three of barrels.
- Class III futures continued to climb, taking the lead from the spot cheese markets. The January contract jumped to $20.30 per hundredweight, gaining 31 cents. All cheese futures also advanced, with January closing up $0.0410 at $1.8950 per pound.
- Nearby grain futures remain relatively quiet in the absence of big reports to move the needle. The March corn contract ticked up to $4.4500 per bushel, adding three cents, while January soybeans dipped to $9.8200 per bushel, $0.0625 lower.
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.
