Class III and Cheese Futures Continue to Rebound
US - Class III, cheese and whey futures continue to post strong, positive gains while the butter and nonfat dry milk (NDM) prices lanquish in a perceived supply glut, writes Alan Levitt, in Wednesday's dairy report.
8 March 2012
1 minute read
Buoyed by the recent Global Dairy Trade (GDT) price of $3,497/MT, or $1.5900/lb., the CME spot Cheddar price at less than $1.5000/lb. appears to be a value-buy. Five loads of barrel cheese and two loads of block cheese were purchased today during the CME spot trading session. CME spot Cheddar blocks and barrels closed 2.5¢, and 1.5¢, higher at $1.4850/lb. and $1.4725/lb., respectively. Class III trading activity was particularly strong with preliminary trading volume estimated at over 1,000 APR contract. The APR contract has experienced a rocky, five days of trading over the past week.
CME spot butter and NDM prices were unchanged during today’s trading. The CWAP NDM price for the week ending Mar. 2 is $1.3558/lb., up $0.0037 on light volume of just 10.5 million pounds.
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