Today's Global Dairy Trade event was supportive, with increases in powders and cheese fueling further gains in Class III and IV futures. Despite no change in spot cheese trade, Class III futures are up, and butter continues its rally, even after last month’s seemingly bearish Cold Storage report. Many Class III contracts are continuing to make new highs. In other news, the Mexican peso is weakening following the election of a new president. It's worth monitoring whether this development will impact Mexico's import activities, or if it's just short-term news.
Milk powder prices climbed at today’s Global Dairy Trade auction, with SMP up 3.5% to $1.23 per pound and WMP +2.1% to $1.58 per pound. That was enough to keep the overall index in the green. The weighted average price lifted 1.7% versus the previous auction. Volume was down 5.0% compared to the event before, with Southeast Asia & Oceania (33.0%) and North Asia (32.0%) the biggest buyers.
Following GDT milk powder, the CME NDM market flirted with the $1.20-per-pound mark, settling at $1.1900, up $0.0225. Volume was heavy, with 17 loads changing hands. The CME butter market continued its climb, reaching a new 2024 high of $3.1625 per pound, gaining $0.0425, with one lot trading.
By KNOW YOUR MARKET
June 4, 2024
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