CME: Manufacturers Rebuilding NDM Stocks
US - Cheese prices held yesterday, but traders continued to push milk futures higher, writes Alan Levitt.
12 January 2012
1 minute read
The
APR-SEP contracts all hit new highs. Class III futures for the second quarter average
$17.62, up 38¢ since the end of 2011 and futures for the third quarter average
$17.53, up 24¢.
Futures are still at a premium to spot prices, which equate to a Class
III price of about $16.75.
Spot butter dropped 1.25¢ after gaining 3.5¢ on Monday. Butter futures were lower
in most contract months.
NDM stocks on Nov. 30 were 146.3 million lbs., up 14.4 per cent (+18.5 million lbs.) vs.
the prior year and the most for that date since 2008 (see chart). Though on a stocksto-use basis, this year’s holdings are about the same as last year.
The California Weight Average Price for NDM for last week was $1.4019, up 1.7¢
from the prior week. The CWAP has ranged between $1.35 to $1.45 for the last seven weeks.
The California Class 1 price for February is $18.52 in the north and $18.79 in the south, down $1.36 from January and the lowest since February
2011. The Federal Order Class I base price comes out Friday, Jan. 20.
Further Reading
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