Class III futures were reluctant to follow several days of green with further higher price action, and showed modest declines or gains depending on the month. The Class III futures curve remains at a discount to current spot levels, indicating a reluctance from market participants to get long at current prices. Class IV continued its slow descent as butter futures posted notable losses and NDM futures posted gains.
Today’s Highlights:
- CME butter prices dropped to the lowest levels since December 2023, shedding four cents to land at $2.4600 per pound. Four loads changed hands. Meanwhile, spot blocks continued to climb, adding four cents to reach $1.9300 per pound. Barrels remained unchanged at $1.8650. Volume traded: three lots of blocks and five of barrels.
- Class III futures shrugged off spot market gains, with Q2 contracts slipping to $19.40 per hundredweight, a nickel lower. Following CME butter lower, Q2 Class IV dropped to $20.10, an 11-cent decline. On the grains side, March corn jumped to $4.9700 per bushel, adding $0.1175, while March soybeans settled at $10.6050, tacking on 15.5 cents.
- Declining US butter prices further widened the price gap with New Zealand ($3.09) and Europe ($3.54). US cheese also remains at a discount at $1.89 per pound compared to $2.20 in New Zealand and $2.29 in the EU. US NDM (at $1.35 per pound) is still pricier than New Zealand’s $1.21 and Europe’s $1.19.
