CME: Markets Get Post-Holiday Pick-Up
US - Milk futures soared coming out of the extended holiday weekend on gains in spot cheese and butter prices, writes Alan Levitt.
29 November 2011
1 minute read
(Butter traded 11 times, the biggest day in six months.) Class III futures jumped 64¢ in DEC and 52¢ in JAN. Cheese, butter and whey futures also were higher in the front months.
Manufacturing milk supplies were heavier over the long weekend, but handlers and plants were able to handle the excess without much difficulty.
In the June-October period, China imported just 150 million lbs. of whole milk powder, down 45 per cent from a year ago (see chart).
Purchases are expected to pick up ahead of the Chinese Lunar New Year, which starts early next year (23 January).
WMP out of Oceania is priced at $1.54-$1.70/lb., up about 7¢ since mid-October, according to USDA’s Dairy Market News.
CWT accepted bids to provide export assistance on sales of 7.4 million lbs. of cheese for delivery through April. Year-to-date acceptances total 88.3 million lbs.
Thursday is the last day to trade NOV futures and options. USDA will announce November Class and Component prices Friday morning.
NASS dairy product prices for the week ending 19 November: cheddar blocks $1.8239 (+5.93¢ vs. the prior week); barrels $1.9070 (+8.61¢); butter $1.7725 (-7.42¢); nonfat dry milk $1.4525 (-3.38¢); dry whey 64.15¢ (+0.55¢).
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