3 November 2011

1 minute read

North America

One load traded for a quarter-cent lower, the first decline in nearly a month.

Heavy butter production (output up 21 per cent March-September) and weakening international markets also are affecting the butter situation.

In contrast, barrels were bid above $1.80 for the first time since 22 August. The spot barrel price is up 13¢ in seven days. Blocks traded higher but are below barrels again.

Nearby milk futures increased while 2012 contracts were mixed. Cheese futures were mostly lower in the 2012 contracts.

Cheese production was below year-earlier levels in the third quarter, ending a streak of 13 straight quarters of year-over-year expansion. Output was 2.592 billion lbs., down 1.1 per cent from last year, according to USDA’s “Dairy Products” report released yesterday (see chart).

In the July-September period, cheddar cheese output was down 3.7 per cent, mozzarella production was down 1.2 per cent and production of other varieties was up 1.1 per cent.

Yogurt production was up just 0.4 per cent in the third quarter. Output in the first three quarters was still up 2.7 per cent, putting production on pace to top 4.2 billion lbs. this year

Further Reading

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