CME: Butter Falls to 21-Month Low
US - Yesterday’s spot trade was dominated by offers to sell. Butter fell 4.5¢ to $1.5050 and Grade A NDM dropped 7¢ to $1.38, writes Alan Levitt.
31 January 2012
1 minute read
Butter futures were lower virtually across the board while
NDM futures were unchanged. Whey futures were down in the front months.
The butter price hasn’t been this low since April 13, 2010. “Churning activity across the
country is strong as cream supplies are plentiful and clearing from one region to another
to find processing capacity,” says USDA’s Dairy Market News.
“Butter producers are
gearing up production schedules and often, churns are running at capacity levels. With
churning as active as it is, production is greatly surpassing demand, thus clearances to
inventory are heavy.”
Butter production in 2011 was up more than 16 per cent, and end-of-year stocks were 29 per cent
higher than the prior year, USDA says.
CWT accepted bids to provide export assistance on sales of 2.8 million lbs. of cheese and 11.0 million lbs. of butter for delivery through June. This
marks the return of CWT assistance on butter, which had been dormant since October 2010.
Thursday is the last day to trade JAN futures and options. January Class and Component prices come out Friday morning.
Further Reading
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