CME: Blocks, Butter Drop Below $1.60
US - Spot markets continue drifting lower. Blocks fell below $1.60 for the first time since 7 April and barrels dropped for the 14th time in the last 19 days, while butter slumped below $1.60 for the first time in more than a year, writes Alan Levitt.
15 December 2011
1 minute read
Yesterday’s cash prices equate to a Class III price of about $16.35 –
30-70¢ below where milk futures for the first half of 2012 are trading.
Class III futures were a
few cents lower today, while butter and NDM futures were mostly higher.
Some cheese buyers are responding to lower prices with increased orders, but this is countered
by other buyers who are operating hand-to-mouth in an attempt to manage year-end inventory
positions, notes USDA’s Dairy Market News.
Retail and foodservice movement of butter
remains good, but buyers are not particularly aggressive in stocking up before the end of the
year.
Corn futures fell to a nine-month low today. MAR futures settled at $5.81/bushel, down 14¢ from yesterday. Declines were part of a broad-based
commodity sell-off, fueled by continued concerns over the European debt crisis, analysts say.
Arla Foods will become the fourth company to sell on the Global Dairy Trade semi-monthly auction platform. Arla will offer SMP starting with the
3 April, 2012, event.
GDT started with Fonterra product in 2008. US milk powder from Dairy America was added two months ago. Murray
Goulburn will offer lactose on GDT beginning in April.
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