CME: Cheese Market Crashes
US - Cheese prices plunged further last Friday in the absence of buyers on the Exchange, reversing gains made over the previous two weeks, reports Alan Levit.
21 November 2011
1 minute read
Blocks were offered 15.25¢ lower to $1.8325 and barrels were offered 12.5¢ lower to $1.87 but no loads were purchased. Butter was offered lower as well (-2¢) but likewise nothing was sold. Milk futures losses over the last two days appear to have been overdone, as prices were higher today across the board. Whey futures were up significantly, reaching new highs again in nearly month.
The October “Milk Production” report showed that dairymen continued to expand last month. Total output in the 50 states was 16.23 billion lbs., up 2.1 per cent from a year ago, according to the USDA report released this afternoon (see chart) . Cow numbers were 9.219 million head, up 9,000 head from the previous month. Production per cow was 56.8 lbs./day, up 0.5 lbs. (+1.0 per cent) from a year ago, USDA says.
The Class I base price for December is $18.47, up 2¢ from November. For the year, the Class I mover averaged $19.13, the highest ever. NASS dairy product prices for the week ending Nov. 12: cheddar blocks $1.7646 (+3.91¢ vs. the prior week); barrels $1.8209 (+6.21¢); butter $1.8382 (-0.11¢); nonfat dry milk $1.4860 (+1.38¢); dry whey 63.60¢ (+0.38¢).
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