CME Butter Drops Below $2.70 on High Volume
Spot butter fell to $2.6900 per pound, a nickel lower, with 38 lots trading.
The September butter contract decreased to $2.7175 per pound, losing $0.0125.
Spot NDM remained at $1.1025 per pound, with zero loads changing hands.
WMP prices at the GlobalDairyTrade Pulse event dropped to $2,450 per metric ton, or $1.11 per pound, down 11.7% versus the previous Pulse and -2.6% compared to Contract 2 at the latest main auction.
Fourth quarter NDM futures eased to $1.1418 per pound, $0.0228 lower.
Spot blocks tumbled to $1.9475 per pound, shedding six cents, with one lot exchanged. Barrels rose to $1.8125 per pound, up $0.0075, with three loads trading.
The September Class III contract slipped to $18.50 per hundredweight, losing 38 cents.
Fourth quarter “all cheese” futures settled at $1.8857 per pound, declining by $0.0277.
Spot dry whey dipped to $0.2550 per pound, giving up a half cent, with five lots changing hands.
Fourth quarter dry whey futures settled at $0.3137 per pound, losing a half cent.
The September corn contract eased to $4.6650 per bushel, down $0.0275. September soybean futures declined to $13.5150 per bushel, shedding 18.5 cents.
FROM THE TRADING DESK: Persistent, heavy sell-side volume in the butter market made a dent in spot pricing today. Spot butter prices dropped a nickel with a total of 38 lots trading hands. That’s the sixth-largest single-session trading volume, but still shy of last week’s record 49 lots. Spot blocks took a big hit as well, dropping back below $1.95 per pound to the lowest levels since late July. Anecdotal reports suggest demand may be slowing at these higher prices, freeing up a little more supply for Chicago.