Class III milk continued its downside move. The May contract took the largest loss, settling down 42¢, to $21.45/cwt., while the November contract settled up 3¢, to$18.89/cwt. The market looks technically like it is time to buy the dip. One might expect to see some buying come in early to test the waters.
Blocks moved 1¢ lower; barrels continued their downward move, losing 3¢ lower. It may take until the end of the week before we get a clearer picture on the availability of cheese at the exchange level, and if prices will take a larger correction. We don’t believe there is currently enough excess cheese out there for a sharp correction to spot prices just yet.
Class IV futures were mixed. Spot butter gained 2¢; the $1.99/lb. level will be watched with great anticipation to see if we just test the recent high or break through it. A breakout could lead to the $2.05 level in a heartbeat and, in turn, higher futures prices for the near-term.
NFDM futures put in a mixed session. China and Mexico have been comparatively quiet with sourcing product and have really ground the market to a halt this month.
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March 26 spot session results:
Block cheese: $2.4225 (down 1.0¢)
Barrel cheese: $2.33 (down 3.0¢)
Grade A NFDM: $2.0225 (up 2.25¢)
Butter: $1.97 (up 2.0¢)
Today’s expectations:
• Class III & Cheese to open higher
• Dry Whey to open mixed
• Class IV, Butter & NDFM to open steady
Grain futures
Corn continued on its sideways pattern; beans tracked higher. One would expect to see some shuffling of positions going on prior to the weekend, so expect more volatility out of the soybean market over the next couple of days.
Source: Dairy Herd
