Bearish Global Dairy Market Sentiment
US - Global Dairy Trade (GDT) results for both cheese and anhydrous milkfat (AMF) continue to confirm a bearish market sentiment, writes Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres.GDT prices for
cheese at $1.33/lb. and butter equivalent
AMF at $1.20/lb. are below current CME
Cheddar block and butter prices at $1.50/
lb. and $1.4125/lb., respectively. This
price difference makes U.S. exports
comparably more costly for global providing export assistance for 43.4
million lbs. of cheese, nearly 65% higher
than the same period in 2011.
Since January 2012, when butter
export assistance was reopened, CWT
has provided awards for 38.5 million
lbs. of butter. However, the growing gap
between U.S. and world prices may
require greater bonus awards to move
equivalent volumes. This could further
hamper export efforts needed to manage,
what is anticipated to be, stronger U.S.
milk production through the spring.
The USDA released the latest National
Dairy Product Sales Report (NDPRS)
prices this week. With the
exception of NDM, product sales prices
reported as of Apr. 14 are lower than the
prior week. The May Class I mover is
$15.85, up 19¢ vs. the prior month.
The CME Cheddar block price closed
a penny higher at $1.500/lb. on a single
bid today. The Cheddar barrel price
settled unchanged at $1.4600/lb. after
3 trades. The CME spot butter price
closed 1.25¢ lower at $1.4125/lb. after
a single trade. Both CME Grade A and
Extra Grade NDM closed unchanged at
$1.1775/lb. and $1.1575/lb., respectively.
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