CME Barrels Reach Highest Price Since 2020, Driving Class III Futures Higher
Source: DairyNews.today
The CME barrels market continues its upward momentum, climbing by an additional 5 cents to reach $2.4850 per pound, marking its highest price since November 2020. In contrast, spot blocks saw a more subdued movement, easing by half a cent to settle at $2.2750 per pound. Meanwhile, butter rebounded, regaining 4.5 cents to close at $3.1300 per pound.
This sharp increase in barrel prices has positively impacted the dairy futures market, pushing Q4 Class III contracts up by 14 cents, reaching $23.17 per hundredweight. On a week-to-week basis, Q4 futures jumped by an impressive 98 cents compared to the prior Friday, reflecting bullish sentiment in the market.
USDA data also indicates a significant rise in spot milk prices in the Upper Midwest. For Week 37, the midpoint hit $2.50 per hundredweight above class, the highest price since 2010. The range peaked at +$4.00, a stark contrast to last year’s midpoint of +$1.00 and the five-year average of just $0.05.
The surge in barrel prices and strong milk premiums signal a robust demand outlook heading into the crucial final quarter of the year, further supporting the dairy market’s current upward trajectory.
USDA data also indicates a significant rise in spot milk prices in the Upper Midwest. For Week 37, the midpoint hit $2.50 per hundredweight above class, the highest price since 2010. The range peaked at +$4.00, a stark contrast to last year’s midpoint of +$1.00 and the five-year average of just $0.05.
The surge in barrel prices and strong milk premiums signal a robust demand outlook heading into the crucial final quarter of the year, further supporting the dairy market’s current upward trajectory.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
