Introduction

A 90-day tariff truce between the U.S. and China sparked a market rally, sending Class III milk futures surging and breathing new life into Class IV ingredients.

The announcement of a 90-day reprieve on Chinese and US tariffs is feeding strength in the overall market. US equities rallied about 3% and the US dollar appreciated against most other currencies. Despite a drop in block cheese Monday, the Class III price bounced back after selling off into the weekend. June specifically was up as much as 53 cents as we moved into lunchtime and it pulled the forward curve along with it. Butter and NDM both injected some strength into the Class IV ingredients.

Today’s Highlights from Ever.Ag’s Know Your Markets

1. Spot blocks continued to slip, decreasing to $1.7800 per pound, $0.0375 lower, while barrels were unchanged at $1.7700. Four lots of blocks and three of barrels traded. The CME butter market gained two cents and reached $2.3500 per pound for the first time since March. One load changed hands. While spot NDM ticked up just a quarter cent to $1.2100 per pound, trading volume was heavy at 12 loads.

2. Today’s USDA World Agricultural Supply and Demand Estimates report gave the first look at predictions for the 2025-26 crop. The report was supportive for corn, with new-crop ending stock estimates at 1.800 billion bushels, far below expectations for 2.020 billion. New-crop soybean estimates were also below expectations, but not by as wide a margin, with 295 million bushels compared to the consensus call for 362 million.

3. US corn planting jumped ahead this week, with 62% of the crop in the ground compared to 47% last year and 56% on the five-year average. Soybean planting reached 48% complete, up from 34% in 2024 and 37% on the five-year average.

Conclusion

The risk of loss trading commodity futures and options can be substantial. Investors should carefully consider the inherent risks in light of their financial condition. The information contained herein has been obtained from sources to be reliable, however, no independent verification has been made. The information contained herein is strictly the opinion of its author and not necessarily of Ever.Ag and is intended to be a solicitation. Past performance is not indicative of future results. #Dairy cow LED lighting # Dairy farm lighting system