CME: Spot Prices Advancing
US - Bidding was more aggressive in the spot cheese session, giving a boost to the up-and-down NOV Class III contract.
18 October 2011
1 minute read
Blocks gained 2.25¢, barrels
gained a penny. NOV milk settled 46¢ higher.
The NOV contract is down just 3¢
from where it settled on 20 September, yet the daily average change since then is 36¢.
Five loads of butter traded in the spot session, the most active day in two-and-ahalf months. The price increased for the fifth time in the last six days. Butter
futures also were higher.
Milk production volumes are at their low point of the year, leading to some
localised tightness in supply. In general, however, orders are not stressing
supplies.
Softer international markets continue to put downward pressure on US
prices as well.
The September “Milk Production” report comes out Wednesday afternoon.
Output in August was up 2.1 per cent from the prior year, and is running 1.6 per cent higher year-to-date (see chart).
USDA forecasts total output of 195.7
billion lbs. this year, up 1.5 per cent (+2.9 billion lbs.) vs. a year ago. It projects another 1.4 per cent gain next year to 198.4 billion lbs
Further Reading
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