CME: Cheddar Blocks Increase 7.5 Cents

US - CME spot Cheddar block and barrel cheese prices settled at their highest level since January 2012, writes Alan Levitt, on 15th March 2012.
calendar icon 16 March 2012
clock icon 2 minute read

Both markets were bid higher with no trades, and both settled at $1.5825/lb. which narrowed the block-barrel spread to even. There is some evidence that the barrel market is tighter than the block market, and granted plant expansions of the past several years have favored block/Mozzarella capacity rather than barrel capacity. Margins for block manaufacturers are squeezed whenever the barrel price exceeds the block price.

Similar to yesterday’s butter trading session, the spot butter market was quiet active. Ten loads traded from $1.5075/lb. to as high as $1.5325/lb. The spot butter closed at $1.5150/lb., up 0.75¢.

Dry product prices reported in today’s Dairy Market News’s weekly survey were mostly lower, with few exceptions including lactose and casein prices that were unchanged. The Central dry whey mostly range is 60.5¢ to 64.0¢, down 1.5¢ on both sides of the range. The West dry whey mostly range is 50.0¢ to 61.0¢, down a 5.0¢ on the low side and 2.0¢ on the high side.

Likewise, both the Central and West are reporting a NDM range with a low side holding at $1.20/lb. and only the Central high side is showing declines from last week of 0.5¢ to $1.39/lb. However, the Central/East NDM mostly range is $1.23/lb. to $1.39/lb., down 5.0¢ on the low end and a penny lower on the high end. The West NDM mostly range is $1.22/lb. to $1.34/lb., down a penny lower on both the low and high side.

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.