CME: CME Cash Markets Find Support
US - Would be buyers were willing to bid the CME cash Cheddar block and barrel markets 0.50 cents and 0.25 cents higher today but stopped short of buying the single block offer left on the board at $1.50/lb, writes Alan Levitt in Tuesday's dairy report.
29 February 2012
1 minute read
The CME cash butter market closed unchanged at $1.3950/lb. after two sales. Four bids
remained on the board at the end of of cash butter trading, indicating underlining support for
this market. The CME cash NDM market traded a single load of grade A NDM at $1.2875/lb.,
down 0.50 cents.
Class III futures responded positively after the cash cheese session but traded within a fairly wide
range through most of the day. The price uncertainity is driven, in part, by the whey market. Dry
whey went from being rationed in December and early January to fairly abundant by the end of
February. Prices reported by Dairy Market News (DMN) last week ranged from 39.0 cents to 69.0
cents in the West and from 66.5 cents to 75.5 cents in the Central region.
The most recent NASS dry whey price is 63.95 cents. The MAR CME
Dry Whey futures closed at 56.5 cents, up a penny vs. yesterday but about a dime lower than the FEB contract. Every penny change in the dry whey
price contributes 6 cents per cwt to the Class III price. Therefore, a dime drop in the NASS dry whey price reduces the Class III price by 60 cents.
Further Reading
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