CME: Cheese Use Down, Butter/Powder Use Up In Q3

US - Cheese prices were mixed 29 November but futures continued to move higher, writes Alan Levitt.
calendar icon 30 November 2011
clock icon 2 minute read

Barrels were offered a half-cent lower, blocks were unchanged. Class III futures were 7¢ higher in the JAN-JUN12 contracts.

The spot butter session was very active, with a steady stream of bids quickly filled. In all, 14 loads traded, the last six at three-quarters of a cent higher.

Butter futures, on the other hand, were mostly lower. Whey futures continued to rally, hitting new highs in most contract months. The JAN-JUN12 average is 61.1¢. USDA confirmed slowing cheese use in the third quarter.

Disappearance of American cheese was off 4.3 per cent in Q3, the worst quarter in four years (see chart).

Meanwhile, disappearance of other cheese was up just 1.8 per cent. Combined, total cheese use was down 0.6 per cent from the prior year in Q3 after running nearly five per cent higher in the first half of 2011.

Butter movement, on the other hand, remained robust in third quarter. Commercial use was up 12.2 per cent, helping to clear very heavy production volumes.

Disappearance was up almost 10 per cent in the first three quarters of the year, USDA says.

Manufacturers were also successful in moving powder in the third quarter: NDM/SMP use in Q3 was up about 11 per cent vs. a year ago, according to USDA production and inventory figures.

Fluid milk sales were down 1.3 per cent in Q3.

Further Reading

- You can view the full report by clicking here.

Daily Dairy Report - Copyright © 2008 CME. All rights reserved.

TheMeatSite News Desk
© 2000 - 2024 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.