CME: Cheese & Whey Futures Pressure Class III Lower
US - Dairy markets traded lower today as the bearish perception of last Friday’s “Dairy Products” report permeated the actions of traders, hedgers and speculators alike, writes Alan Levitt, in Monday's dairy report.
6 March 2012
1 minute read
According to the report, substantial
production gains were posted in January for most dairy products. However, there may a ray of
optimism in that despite greater American cheese production, America cheese stocks as of Jan. 31,
were 4.0% less than last year.
Therefore, despite a 3.1% gain in American cheese production vs. the
prior year, stocks, over that same time were actually 4.0% lower suggesting higher commercial
disappearance year-over-year for American cheese (see chart, see full report).
CME spot Cheddar blocks and barrels settled lower after moderate trading today. Block prices closed
at $1.4600/lb., down 2.0¢, after seven trades, with a single, above-the-market offer left on the board.
The barrel market closed at $1.4575/lb. down 2.25¢, after two trades with also a single above-themarket offer left on the board. Both cheese and whey futures contracts came under selling pressure early Monday morning and the pressure
continued throughout the day with all 2012 contracts trading lower. APR and MAY Class III futures settled limit-down, 75¢, at $14.24 and $14.20,
respectively. CME spot Grade A NDM ended the day lower at $1.2775/lb. down 1.0¢, while the CME butter price was unchanged at $1.45/lb.
Further Reading
 | - | You can view the full report by clicking here. |
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