CME: US Cheddar Exports to Mexico Soar

US - US Cheddar cheese exports increased 27 per cent, or 2.4 million pounds, to 10.8 million pounds in January 2012 vs. January 2011. This stellar gain is due, in part, to the continual growth in Cheddar cheese exports to US neighbour, Mexico, writes Alan Levitt, on March 12.
calendar icon 13 March 2012
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Cheddar cheese exports to Mexico totaled 1,039 metric tons, or 2.3 million pounds, up over 560 per cent vs. January 2011. In addition, Mexico accounted for over 21 per cent of US Cheddar cheese exports during January 2012.

The CME spot Cheddar barrel cheese price was bid 0.5¢ higher to $1.5075/lb. today. There were no trades in either the barrel or block markets. The CME spot Cheddar block price settled at $1.4925/lb.

That is a 1.5¢ discount to the barrel market. The block market traditionally trades at a 2.0¢ to 3.0¢ premium to the barrel market. Class III futures settled higher. CME spot butter trading was a little more interesting with a trade at $1.4675/lb., up 1.75¢. A bid at $1.4650/lb. and an offer at $1.4750/lb. were left on the board. Butter futures were not impressed with today’s gain in the cash butter and settled mostly unchanged to lower.

Corn futures moved higher today with the MAR contract breaking $6.70 per bushel and the MAY contract trading above $6.60 per bushel. The corn market is being supported by potential additional demand from China and news that Argentina, the world’s second largest corn exporter, may limit exports of grain due to a lower than expected harvest.

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