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CME: Cheese Stocks Still Hanging Over Market

24 October 2011

US - Whey futures ticked higher today, reaching new contract highs in nearly every month, writes Alan Levitt.

The fourth-quarter average is 60.75¢, up 0.75¢ from a week ago, and the H1-2012 average is 49.3¢, up 1.6¢.

The latest inventory report suggests little improvement in cheese sales in September.

Total cheese stocks on 30 September were 1.040 billion lbs., up 135.3 million lbs. (+15 per cent) from the fiveyear average for that date, according to USDA’s “Cold Storage” report released this afternoon.

American cheese holdings were 632.6 million lbs., about 10 per cent above the five-year average (see chart). The September drawn-down in stocks was in-line with historical rates.

In the face of near-record butter production, the September decline in butter inventories was the smallest for the month in 10 years.

Butter holdings shrunk just 14.6 million lbs., barely half the historical rate. On 30 September, butter stocks were 151.1 million lbs., up from 130.0 million lbs. a year ago, USDA says.

The Class I base price for November is $18.45, down $1.11 from October and down $3.33 from September.

NASS dairy product prices for the week ending 15 October: cheddar blocks $1.7373 (-1.02¢ vs. the prior week); barrels $1.7227 (+1.47¢); butter $1.7528 (-0.51¢); nonfat dry milk $1.5231 (-1.87¢); dry whey 61.93¢ (+1.60¢).

Further Reading

- You can view the full report by clicking here.


Daily Dairy Report - Copyright © 2008 CME. All rights reserved.


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