CME: CME Butter Market Comes Under Pressure

US - After just two trades, the CME cash butter price fell 2.25 cents today to $1.3950/lb, writes Alan Levitt, in Monday's dairy report.
calendar icon 28 February 2012
clock icon 1 minute read

More downward price pressure is possible because Wednesday, Feb. 29 is the last trading day for butter produced prior to Dec. 1, 2011 at the CME. The CME cash cheese markets closed unchanged with blocks at $1.4675/lb., after five trades, and barrels at $1.4700/lb. with a single offer left on the board. Class III futures closed higher while butter futures were lower.

According to the Ithaca Jounal, another yogurt plant will call New York home. PepsiCo and Theo Muller Gmbh, Germany’s largest privately held dairy business, will invest $206 million and create 186 new jobs at the new plant in the Genesee Valley Agri-Business Park, located 105 miles west of Syracuse. New York is already home to 29 yogurt plants that produced more than 530 million pounds of yogurt in 2011. According to the state, that is 43 percent greater than in 2010 and more than double 2008 production levels.

A Daily Dairy Report observation, the growth in New York yogurt production would seem to provide an opportunity for further processing of butterfat being produced from these plants.

Further Reading

- You can view the full report by clicking here.

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