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CME: February Class III & IV: $16.06 & $15.92

05 March 2012

US - Several factors collided in the marketplace today. First, most NASS dairy product prices for week ending Feb. 25 were lower vs. the prior week, writes Alan Levitt, in Friday's dairy report.

Only the nonfat dry milk posted a gain, up 0.46 cents vs. the prior week to $1.3681/lb. The NASS prices: Cheddar blocks $1.4940 (-1.06¢); barrels $1.5143 (-1.09¢); butter $1.4192 (-2.19¢); nonfat dry milk $1.3681 (+0.46¢); dry whey $0.6113. (-2.92¢).

Second, CME spot Cheddar block and barrel prices closed lower on heavy trading volume. Both block and barrel prices settled at $1.48/lb., down 0.75¢ and 2.0¢, respectively. Thirteen loads of blocks and eight loads of barrels traded. APR and MAY Class III futures settled below $15.00. The CME spot butter price also closed 1.5¢ lower at $1.4500/lb. after seven trades.

The Class III price for February is $16.06, down 99¢ from January and 94 cents lower than last year. The Class IV price for February is $15.92, down 64¢ vs. the prior month and $2.48 less than last year.

According to the “Dairy Products” report released this afternoon, American cheese production in January totaled 370.6 million pounds, up 3.1% vs. last year. Butter output totaled 180.6 million pounds, up 8.5% vs. last year. NDM/SMP production reached 192.6 million pounds, up 22.6%. On the surface, this report appears bearish; however, January dairy product stocks did not climb at the same rate as production which indicates exports were strong. More analysis to follow in Monday’s Daily Dairy Report.

Further Reading

- You can view the full report by clicking here.


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


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