CME: DEC Milk Futures Rally To New High
US - DEC Class III futures shot limit-up (+75¢) this morning on further seasonal gains in cheese prices, writes Alan Levitt.
4 November 2011
1 minute read
Blocks traded 4.5¢ higher, and barrels were bid up 4¢ without attracting
any loads for the second straight day.
DEC Class IIIs pulled back before the close,
settling at $18.35, up 63¢ and a new high, while NOV gained 31¢ and JAN increased
33¢. Cheese futures for NOV-FEB were up 3.5¢.
Commercial stocks of NDM at the start of the fourth quarter were 150.9 million lbs., up
eight per cent from a year ago, according to USDA (see chart).
Production of NDM and SMP has
been heavy this year – combined output was up 4.3 per cent in the first half and up 12.1 per cent in
the third quarter, putting 2011 production on track for a 46-year high. Commercial use
has mostly kept pace, but appears to be lagging in recent months.
The NDM market remains soft and whey markets continue to strengthen, according to
Dairy Market News’ weekly survey.
Western NDM is pegged at mostly $1.37-$1.49,
unchanged from last week. Midwestern whey is mostly 59.5¢-63.0¢, up half a cent, DMN says.
“Manufacturers are not offering extensively into
the spot market, therefore most sales activity in the edible market is between brokers/traders and end users,” the report says.
Further Reading
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