Mielke Market Daily
~~Mielke Market Daily
(A daily wrap-up of dairy markets and the things affecting them, from DairyBusiness Update associate editor Lee Mielke)
Cash cheese prices strengthened the first Friday of 2014 as traders awaited this afternoon’s November Dairy Products report. The 40lb. Cheddar blocks, on 1 unfilled bid, closed this morning at $2.0425/lb., up 2.75¢ on the day. One single bid took the 500lb. barrels up 7¢, to $1.92/lb. An offer at $1.95/lb. was left on the board.
The blocks are up 4.25¢ on the week, 28.25¢ above a year ago, and the highest level since November 6, 2012. You’ll recall the barrels plunged a total of 12¢ Monday and Tuesday but regained 7¢ this morning. They still closed 5¢ below last Friday, 20¢ above a year ago, and 12.25¢ below the blocks. Only 2 cars of barrel traded hands this week. The AMS-surveyed U.S. average block price hit $1.9133/lb., up 2.4¢, while the barrels averaged $1.8990, up 6.3¢.
FC Stone risk management consultant Joe Kobel wrote in this morning’s eDairy Insider Opening Bell that added support is coming from Dairy Market News report yesterday of mostly higher international dairy product prices and from the higher average U.S. cheddar cheese prices in yesterday's AMS-surveyed prices.
Unfilled bids, 2 of them, took the spot butter 3¢ higher today, to $1.57/lb, following 5 unfilled bids yesterday that added 0.75¢, following a 1¢ gain on Tuesday. The CME Double A butter price is up 2¢ on the week and 7¢ above a year ago. Eleven cars traded hands this week. AMS butter averaged $1.5804/lb., down 6.5¢.
Cash Grade A nonfat dry milk, after losing 2¢ on Monday and 3¢ on Tuesday, inched up 0.75¢ this morning, on 3 trades, and is now trading at $2.0675/lb. The 1st sale was at $2.0650/lb., and 2 followed at $2.0675/lb. Two bids at $2.0675/lb. got no response. The Grade A price is down 4.25¢ on the week. Extra Grade held all week at $2.09/lb., with no activity.
Today’s market closing prices:
Butter: Up 3¢, to $1.57/lb.
Cheddar blocks: Up 2.75¢, to $2.0425/lb.
Cheddar barrels: Up 7¢, to $1.92/lb.
Grade A nonfat dry milk: Up 0.75¢, to $2.0675/lb.
Extra Grade nonfat dry milk: Unchanged, at $2.09/lb.