CME Barrels Drop Below $1.80

Spot blocks rose to $1.9650 per pound, up a half cent, with one lot trading. Barrels fell to $1.7750 per pound, shedding a nickel, with four loads exchanged.

US total cheese production reached 1.170 billion pounds in June, down 2.8% (-33.7 million pounds) versus May but up 0.4% (+4.2 million pounds) year-over-year.

The September Class III contract increased to $17.48 per hundredweight, a 29-cent gain.

September “all cheese” futures pushed to $1.8530 per pound, adding $0.0290.

Spot butter advanced to $2.6200 per pound, a half cent higher, with two lots changing hands.

June butter production totaled 163 million pounds, down 16.4% (-31.9 million pounds) on the month but up 2.3% (+3.7 million pounds) versus prior-year levels.

The September butter contract lifted to $2.5900 per pound, an upswing of $0.0125.

Spot NDM increased to $1.1250 per pound, tacking on $0.0050, with seven loads trading.

Combined NDM/SMP production declined to 220 million pounds in June, down 9.6% (-23.5 million pounds) month-over-month and -1.5% (-3.4 million pounds) on the year. NDM manufacturers’ stocks decreased to 297 million pounds, down 1.3% (-3.8 million pounds) from May and -4.0% (-12.3 million pounds) versus last year.

Fourth quarter NDM futures settled at $1.1792 per pound, up $0.0047.

Spot dry whey climbed to $0.2725 per pound, gaining a penny, with four lots exchanged.

June whey production rose to 80 million pounds, up 3.0% (+2.3 million pounds) on the month and +2.7% (+2.1 million pounds) year-over-year. Stocks also reached 80 million pounds, up 5.8% (+4.4 million pounds) from the month before and +14.3% (+10.0 million pounds) from the previous year.

The September dry whey contract rose to $0.2900 per pound, an increase of $0.0013.

September corn futures advanced to $4.8425 per bushel, a 3.5-cent bump. The August soybean contract jumped to $14.4400 per bushel, $0.1525 higher.

FROM THE TRADING DESK: Class III futures were mostly higher across the curve, despite the five-cent lower session in barrels. After today’s price action, Class III futures hold a premium to the cash price as we wrap up week three of August pricing. The latest Dairy Products report showed ice cream production continued to trend higher in June amid increasing cream multiples. Still, the US is at historically low ice cream production levels.