Market_Monitor_090523
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GDT WMP Up, CME NDM Down

WMP prices at the latest GlobalDairyTrade event jumped 6.0% to $2,702 per metric ton, or $1.23 per pound. SMP prices slipped 2.0% to $2,286 per metric ton, or $1.04 per pound.

Spot NDM decreased to $1.0575 per pound, shedding $0.0175, with five lots trading.

The October NDM contract declined to $1.0785 per pound, giving up $0.0015.

Combined NDM/SMP production totaled 197.5 million pounds in July, down 8.3% (-18.0 million pounds) on the month and -12.9% (-29.3 million pounds) year-over-year. NDM manufacturers’ stocks reached 283.3 million pounds, down 5.2% (-15.5 million pounds) versus June and -15.0% (-49.8 million pounds) on the year.

Spot butter jumped to $2.7100 per pound, gaining a nickel, with 19 loads changing hands.

GDT butter advanced 1.1% to $4,588 per metric ton, or $2.08 per pound (adjusted to 82% butterfat).

Fourth quarter butter futures settled at $2.6861 per pound, tacking on $0.0318.

July butter output totaled 157 million pounds, down 3.2% (-5.1 million pounds) month-over-month and up 3.5% (+5.3 million pounds) versus 2022.

Spot blocks remained at $1.9500 per pound, with zero lots exchanged. Barrels dipped to $1.8675 per pound, down $0.0025, with no loads trading.

GDT cheddar eased 0.6% to $4,102 per metric ton, or $1.86 per pound.

The October Class III contract decreased to $18.88 per hundredweight, four cents lower.

October “all cheese” futures slipped to $1.9700 per pound, losing $0.0040.

US total cheese production reached 1.162 billion pounds in July, down 0.7% (-8.0 million pounds) versus June and -0.7% (-7.9 million pounds) on the year.

Spot dry whey climbed to $0.3200 per pound, 1.5 cents higher, with three lots changing hands.

The October dry whey contract ticked up to $0.3253 per pound, adding $0.0038.

US whey output totaled 81.3 million pounds in July, up 0.8% (+679,000 pounds) on the month and +2.5% (+2.0 million pounds) year-over-year. Stocks reached 83.4 million pounds, up 3.0% (+2.4 million pounds) month-over-month and +17.7% (+15.3 million pounds) versus 2022.

September corn futures increased to $4.7100 per bushel, gaining $0.0625. The September soybean contract declined to $13.4900 per bushel, giving up $0.0725.

FROM THE TRADING DESK: US dairy markets had mixed reactions coming off today’s GDT auction. NDM spot markets slipped further, while late 2023 futures more or less shook off the SMP decline. Higher GDT butterfat prices spilled over into the US, with both spot and futures moving higher. Digging into the regional data, North Asia (read: China) was less engaged, while buy-side activity from Middle East and Southeast Asia/Oceania picked up from the prior auction.