CME: Butter, Powder Output Very Heavy

US - Resuming the trend from last week, spot dairy markets started the New Year quiet and mostly steady, writes Alan Levitt.
calendar icon 4 January 2012
clock icon 1 minute read

Cheese was unchanged with no activity. Butter traded a half-cent higher. Class III futures were mostly in the black, with new highs in MAR thru JUN.

Milk continued to move into butter/powder channels in November. Butter production was 152.5 million lbs., up 14.2 per cent from a year ago, according to USDA’s “Dairy Products” report released this afternoon.

NDM/SMP production was 159.7 million lbs., up 17.5 per cent. However, ending inventory numbers suggest good butter and powder movement during the month.

Cheese production in November was 886.5 million lbs., up just 0.3 per cent from a year ago, USDA says. Cheddar production was down 1.7 per cent, mozzarella was down 1.5 per cent and other varieties were up 3.4 per cent.

Prices were mostly lower on the semi-monthly Global Dairy Trade auction. The weighted-average price for SMP was $3,269/ton ($1.48/lb.), down 0.6 per cent from the 20 December event. Winning prices for WMP averaged $3,554/ton ($1.61/lb.), down 0.8 per cent.

The weighted-average price for AMF was $3,982/ton ($1.81/lb.), down 5.1 per cent. Cheddar cheese was $3,598/ton ($1.63/lb.), up 0.2 per cent. The overall trade-weighted index was down 0.7 per cent from the previous event, the second straight decline (see chart). The Index was down about six per cent from a year ago.

Further Reading

- You can view the full report by clicking here.

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

TheMeatSite News Desk
© 2000 - 2023 - Global Ag Media. All Rights Reserved | No part of this site may be reproduced without permission.