Welcome to the new Milk Market Minute a daily summary of CME spot activity and DRP quotes aimed at meeting the needs of dairy producers. We hope you enjoy the revised format from the Daily Dairy Monitor. If you have any comments or questions, please contact us at Insights@Ever.Ag.
FROM THE TRADING DESK:
Class III milk retraced its steps leading into this morning’s spot call. The cheese trade was extremely quiet, causing Class III prices to fall as much as 50 cents in May. All eyes will be on the Cold Storage report tomorrow. Ever.Ag Insights expects the data will show no build or destocking of cheese inventories. The GDT Pulse event resulted in a slightly lower skim milk powder value, causing nonfat futures to slide downward. Argentina corn crop estimates could be lower as a leafhopper issue continues to spread. DRP is not available tomorrow, so if you are considering Class III DRP coverage at these levels, contact us ASAP.
Today’s Highlights
- CME butter backed off today, settling at $2.9700 and giving up three cents. After a surprising jump upwards yesterday, spot cheese markets were stationary today. Spot blocks came in at $1.7600, unchanged, with zero lots traded. Barrels had a similar story, remaining at $1.7700 with no lots exchanged.
- Chinese demand remains soft as the country’s economy struggles to gain footing post-Covid and domestic milk production continues strong. SMP imports dropped 32.1% year-over-year, while WMP fell 14.5%. China also imported 6.7% less cheese compared to last year.
- With field work underway in the Southern US, grain markets are fixed on crop progress. Corn is reportedly 12% planted, in line with last year but ahead of the five-year average of 10%. Favorable weather has emergence at 3%, slightly ahead of last year and the five-year average of 2%. The soybean crop is 8% planted, keeping pace with last year but more than double the five-year average as some growers are finding early planted beans do well.
Today’s Future and Options Settlements
Dairy Revenue Protection Quotes
**DRP quotes are for California. Please use the calculator below for your specific state.
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