CME: Blocks & Barrels Down 6.5¢ In Two Days
US and NEW ZEALAND - Block cheddar traded below $1.70 for the first time since 17 May, writes Alan Levitt.Offers took the price
to $1.69, where buyers finally stepped in and bought three loads.
A fourth load traded
at $1.70, setting the closing price.
Barrels traded five times on both offers and bids,
with the final sale at $1.72.
Both blocks and barrels are down 6.5¢ since Friday. Milk
futures opened higher, retreated after the decline on the cheese market, but recovered
to finish in the black. Cheese futures were mostly higher as well.
Butter traded 2¢ higher to $1.80, giving a boost to nearby butter futures for the third
straight day. NOV-APR butter futures increased 2.7¢.
A record spring flush in New Zealand has put downward pressure on world dairy
prices. Leading supplier Fonterra Co-operative Group says plant intakes are running
13 per cent ahead of a year ago, causing some challenges in milk pick-ups, handling and
processing.
NZ milk production was up 12.1 per cent in the January-July period (see chart).
Corn futures rallied ahead of tomorrow’s “Crop Production” report. DEC11-JUL12 gained 40¢/bushel to an average of $6.59, the highest price
since 27 September.
Further Reading
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