CME Butter Prices Outpace Trade Auction Prices
By Mike North of Commodity Risk Management
Event #180 took place on the Global Dairy Trade auction on Tuesday, the last trade before the Chinese New Year holiday. In it, some interesting results.
Whole milk powder, which makes up the vast majority of the volume traded there, traded 1/10 of 1% lower to a price of $1.49 per pound. Skim milk powder followed suit, down 1.6% finishing at a $1.19 per pound. This gave support to the softer European tender that took place last week. The butter market rose 1.6% to finish at $1.94. The cheddar trade was up 1.3% to $1.79 per pound.
This compares to the CME spot market which on Tuesday, had the butter market up a penny and half finishing at $2.24. Block cheese was down two cents to $1.70 and a half after four trades. The barrel market finished down a quarter of a cent, at $1.63 and three quarters. No trades took place in the Grade A Powder category.
Class III markets traded both sides. February was down 15 cents, March was up a nickel and the balance of the year was either side of unchanged.
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