CME: Whey, NDM Futures Hit New Highs

US - JAN Class III futures jumped 42¢, closing the week above $17 despite continued slippage in the cheese market, writes Alan Levitt.

19 December 2011

1 minute read

North America

Blocks fell 0.75¢ (-9.25¢ for the week) and barrels settled 0.25¢ lower (-3.75¢ for the week). However, whey futures rallied, making new highs in the front five contract months.

JAN-MAR12 futures average 67.7¢, several cents more than where whey is currently trading. NDM futures increased today as well, with new highs in the FEB-DEC12 contracts.

Dairy products were cheaper on supermarket shelves in November. The Milk CPI was 148.8, down 0.4 per cent from October, according to the Bureau of Labor Statistics (see chart).

It’s typical for retail butter prices to decline in November due to holiday promotions and this year was no different. The Butter CPI plunged 5.9 per cent from the prior month to 200.6.

The Cheese CPI declined 0.7 per cent to 225.6, the first decline since February. The November “Milk Production” report comes out Monday afternoon. Production in August-October was up 1.9 per cent from the prior year, and cow numbers increased 11,000 head.

NASS dairy product prices for the week ending 10 December: cheddar blocks $1.8606 (-2.01¢ vs. the prior week); barrels $1.8325 (-8.02¢); butter $1.6245 (-0.39¢); nonfat dry milk $1.4418 (-0.02¢); dry whey 65.37¢ (+0.67¢).