Commodity prices stablein quiet dairy spot market
Commodity traders of dairy products on the Chicago Mercantile Exchange (CME) appeared to take a holiday on Wednesday of this week. An unfilled bid to buy one carload of Grade Extra non-fat dry milk was the day's only activity in the spot market.
As a result of price gains earlier in the week, prices for Cheddar cheese on the CME's spot market stood at $1.6525 per pound for 40-pound blocks and $1.6750 for 500-pound barrels. Barrels overtook blocks on the price in trading late last week.
The AA butter spot market price remained at $1.52 per pound, following a 2.5-cent drop on Friday, June 22. Grade A non-fat dry milk was at $1.2275 per pound while the Grade Extra price rose by .50-cent to $1.1950 due to the bid to buy on Wednesday.
A bit of price movement continued on futures contracts for dry whey.
Prices were down slightly for the last four months of 2012 on Wednesday, but the August through December prices for this year still hovered at between 53.2 and 54 cents per pound.
For a majority of the months from April 2013 through May 2014, the price was at 38.5 cents per pound.
Modest price gains were posted for most months through October 2013 in the Class III milk futures market on Wednesday of this week. The largest gains were 10 cents per hundred for January, May and September in 2013.
As the last week for trading began, the June 2012 futures for Class III milk slipped by 2 cents per hundred to $15.64. Then they rebounded to the $17s per hundred for all months from July through January 2013 and the $16s per hundred for all the remaining months of 2013.
A Class I fluid milk national price base of $15.51 per hundred has been announced for July. This is an increase of 27 cents from June, but $5.52 per hundred less than the price in July 2011.
Cooperatives Working Together has accepted a package of four bids from Dairy Farmers of America and Darigold Cooperative for price assistance on the export of 2.645 million pounds of Cheddar cheese and 220,462 pounds of butter to countries in Asia and the Middle East. Scheduled deliveries are from July through December.