Supply concerns and rising global prices continued to drive CME barrels higher. Prices shot up 7.5 cents to $2.5650 per pound, a new all-time high. Spot blocks slipped to $2.2775 per pound, down $0.0225. Eight lots of barrels and zero loads of blocks changed hands. Spot butter ticked up 1.5 cents to $3.0850 per pound, with five lots exchanged.
The latest GlobalDairyTrade event was largely positive, with only butterfat logging price decreases. SMP advanced 2.0% to $1.27 per pound, while WMP rose 1.5% to $1.56 per pound. Cheddar climbed 2.7% to $2.01. Butter prices eased 1.9% to $2.97 per pound (adjusted to 82% butterfat) and AMF declined 1.2% to $3.27 per pound. Total event volume was up 1.0% on an event-to-event basis and China continued to step up its participation. North Asia accounted for 51% of the total volume purchased.
In August, US retail sales surpassed expectations, totaling $710.8 billion. That was up 0.1% month-over-month and +2.1% on the year. Analysts had predicted a monthly decline of 0.2%. Spending was just short of the inflation rate of +0.2% and +2.5%.
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