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:
The front nine months of the futures curve were deep in the red today after multiple days of decreased spot cheese buying at the CME. Though the Cold Storage report lived up to expectations as bearish butter/bullish cheese, momentum in futures did not change after the report. Major news agencies reported today on HPAI, creating potential consumer demand worries in the processing community. USDA announced new restrictions on interstate movement of lactating dairy cattle, requiring individual cows to test negative for Influenza A.
Today’s Highlights
- Weak demand continued to soften the CME NDM market, which dropped to $1.1025 per pound, shedding 1.5 cents to reach the lowest price since September. Three loads changed hands. Meanwhile, after holding at six-month highs, spot blocks slipped to $1.7400 per pound, two cents lower, with no lots trading.
- According to USDA’s Cold Storage report, cheese stocks reached 1.459 billion pounds in March, up just 1 million pounds (+0.1%) on the month. That was below expectations and well behind the five-year-average monthly increase of 17 million pounds. Butter, meanwhile, was more bearish, with inventories reaching 316.6 million pounds, up almost 19 million pounds (+6.4%) on the month, compared to the five-year-average February-to-March 14-million-pound increase.
- Today, the Biden administration issued a federal order stating that all lactating dairy cattle must test negative for Influenza A virus before crossing state lines. USDA will expand the order as necessary going forward. Meanwhile, the FDA confirmed some collected milk samples contained inactive virus remnants, but that the commercial milk supply remains safe for human consumption.
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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