Class III Futures Overtake Class IV Amid Dairy Market Gains
Source: DairyNews.today
In a notable shift within the dairy futures market, Class III futures have surpassed Class IV, signaling strong momentum as commodity prices continue to climb. Spot butter made gains yet again, inching 1.5 cents higher to reach $3.1900 per pound, approaching the critical $3.20 threshold.
The CME Nonfat Dry Milk (NDM) market followed suit, advancing by 1.5 cents to settle at $1.3800 per pound, with four lots trading. Additionally, CME barrels increased by a penny to reach $2.2850 per pound, while blocks remained steady at $2.2700. Neither cheese nor butter saw any further volume traded.
Dairy Futures Strengthen
While gains in CME cheese were modest, Class III futures surged. Fourth-quarter contracts closed at $22.83 per hundredweight, marking an impressive 64-cent increase. This boost elevated Class III prices above Class IV, which also saw upward movement, climbing 20 cents to settle at $22.64 per hundredweight.
Strong U.S. Crop Conditions Support Market Stability
Beyond the dairy markets, U.S. crop conditions remain robust, providing a stable backdrop for the broader agricultural sector. As of September 8, 64% of the U.S. corn crop was rated in good to excellent condition, according to the USDA. This is a slight dip from the 65% recorded the previous week but a marked improvement from 52% during the same period last year. Similarly, the soybean crop remained unchanged at 65% good to excellent, a significant rise compared to last year’s 52%.
The combination of firming commodity prices and stable crop conditions suggests a resilient agricultural outlook for the remainder of the year.
Dairy Futures Strengthen
While gains in CME cheese were modest, Class III futures surged. Fourth-quarter contracts closed at $22.83 per hundredweight, marking an impressive 64-cent increase. This boost elevated Class III prices above Class IV, which also saw upward movement, climbing 20 cents to settle at $22.64 per hundredweight.
Strong U.S. Crop Conditions Support Market Stability
Beyond the dairy markets, U.S. crop conditions remain robust, providing a stable backdrop for the broader agricultural sector. As of September 8, 64% of the U.S. corn crop was rated in good to excellent condition, according to the USDA. This is a slight dip from the 65% recorded the previous week but a marked improvement from 52% during the same period last year. Similarly, the soybean crop remained unchanged at 65% good to excellent, a significant rise compared to last year’s 52%.
The combination of firming commodity prices and stable crop conditions suggests a resilient agricultural outlook for the remainder of the year.
23.09.2024
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