Spot blocks continued yesterday’s climb, jumping past barrels to close at $1.9650 per pound, up 6.5 cents. Barrels added four cents to reach $1.9500 per pound. Other dairy markets were relatively quiet. Spot dry whey eased to $0.5900 per pound, down $0.0075, with two loads exchanged, while NDM dipped to $1.2300 per pound, $0.0025 lower, with four lots changing hands. Butter was unchanged at $3.1025 per pound.
Class III contracts continued to rebound along with spot cheese. September futures leapt to $20.80 per hundredweight, shooting up 56 cents, while Q4 settled at $20.58, tacking on a quarter.
In the global marketplace, US cheese at $1.93 per pound is just barely below New Zealand’s $1.94, but at more of a discount to $2.16 in Europe. There’s more of a price spread in butter, with New Zealand the cheapest at $2.87 per pound (adjusted to 80% butterfat), the US at $3.10 and the EU the most expensive at $3.46 (on an 80% butterfat test). The US is least competitive in NDM/SMP and dry whey. US NDM/SMP costs $1.23 per pound, compared to $1.12 in New Zealand and $1.18 in Europe. Dry whey prices settled at $0.60 in the US, $0.46 in New Zealand and $0.32 across the Atlantic.
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