While the outlook for U.S. milk prices is bearish, quarterly average prices paid for replacement dairy cows maintained strength in July. And, estimated June 2015 cull cow prices averaged $113.00/cwt., down just $1.00/cwt. from May.
Class III and Cheese extended its rally yesterday, gaining nearly 30¢ in the nearby August contract. While the tone was firm going into spot, futures rallied sharply after blocks and barrels posted strong gains.
Fundamentally, the cheese market has largely been in balance in 2015. Some key developments to watch include foodservice demand. Burger King, for example, reported its best performance in over nine years.
Trade ministers from 12 Pacific Rim nations head to Hawaii this week to tackle the tough decisions needed to finalize a trade deal that will free up global commerce and set common standards for nearly half of the world's economy.
After all the Class III futures price movement, the August contract settled at $16.28/cwt., up 34¢ on the week, despite Friday’s sharp losses. The 1H 2016 Class III pack stabilized last week, and now seems in a comfort zone.
Class III and Cheese futures shrugged off an arguably bearish Cold Storage report and turned higher. As if in some alternative universe, butter prices rallied yesterday. August butter was limit-up, with the deferred contracts not far behind.