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.

12 October 2011

1 minute read

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.