CME blocks dipped by half a cent yet again today, settling at $1.8900 per pound. Meanwhile, barrels rose to $1.9250 per pound, up 3.5 cents. Two lots of each were traded. Butter prices also advanced to $2.7050 per pound, adding 1.5 cents with five loads exchanged.
European butter and cheese prices remain at a premium to the rest of the world. EU cheese averaged $2.46 per pound this week compared to $2.13 per pound in NZ and $1.91 per pound in the US. At the same time, EU butter averaged $3.74 per pound, far outpacing New Zealand at $2.87 per pound and the US at $2.69 per pound (prices adjusted for 80% butterfat). Anecdotal reports indicate cheese and butter exports are drawing attention due to the favorable price gaps.
Like spot cheese prices, Class III futures were mixed. The nearby contract climbed to $20.57 per hundredweight, up five cents while Q1 prices slipped to $19.63 per hundredweight, down 14 cents. More green appeared in the Class IV space with November futures settling at $21.04 per hundredweight, three cents higher and Q1 futures coming in at $21.21 per hundredweight, also adding three cents.
