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CME: Nearby Milk Futures Higher On Cheese Gains

25 October 2011

US - The choppy cheese market moved back up today, gaining 1.25¢ on blocks (on four trades) and 2.25¢ on barrels (on five trades), writes Alan Levitt.

Blocks have bounced in a range of $1.68- $1.77 for five weeks.

NOV-JAN Class III futures increased 14-32¢ but the rest of 2012 was flat/mixed.

Cheese futures were mostly higher out to JUN12. Spot butter traded another penny higher to $1.87 but butter futures were mostly steady. NDM futures were unchanged, while whey futures continued to climb in the 2012 contracts.

Spot prices equate to a Class III price of about $17.85 and a Class IV price of about $18.80.

Fourth-quarter futures average $17.71 for Class III and $17.98 for Class IV.

Heading into the fourth quarter, butter stocks were equivalent to about 34 days of use – three days more than last year, but still about two weeks less than the five-year average for end of September.

“Butter producers and handlers are indicating that orders remain strong for upcoming holiday needs,” says USDA’s Dairy Market News.

Dairymen sent 246,800 cows to slaughter last month, the most for September since 2003.

However, cow numbers remained generally steady from June-September as replacements have been added to the herd. Year-to-date culling is up 4.2 per cent from last year, USDA says.

Further Reading

- You can view the full report by clicking here.


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


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