CME: International Prices Gain Support

US - International prices were mixed in Dairy Market News’ biweekly survey, writes Alan Levitt.
calendar icon 28 October 2011
clock icon 1 minute read

Oceania SMP is marked at $1.45-$1.59 (up a penny from two weeks ago) and 82 per cent butter is $1.81-$1.91 (+2¢), but cheddar cheese slipped to $1.54-$2.04 (-11¢).

The Oceania SMP price had fallen 35¢ in the last four months (see chart).

“The major natural gas pipeline leak in New Zealand has forced many dairy plants on (New Zealand’s) North Island to shut down or operate on reduced schedules, impacting current product availability,” says DMN.

Meanwhile, European prices were lower for butter but slightly higher for other products. More discounting is taking place in the US NDM market to prevent supplies from accumulating and to remain competitive overseas. DMN pegs Western NDM at mostly $1.37-$1.49, down 1.5¢ from last week.

US whey prices resumed their upward trajectory this week. Western whey is mostly 61.75¢-65.00¢, up slightly from a week ago, DMN says.

“Western dry whey prices are uneven with a two-tiered market developing for domestic versus export markets,” says DMN.

“Domestic supplies remain tight with the bulk of production geared to contract fulfillment. Excess supplies when available are often going to satisfy export customer demand.”

Whey futures were higher in most contract months.

Further Reading

- You can view the full report by clicking here.

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