Butter and cheese prices forged higher again this week on the Chicago Mercantile Exchange (CME) before a steady pause at midweek as traders contemplated USDA’s Cold Storage Report showing butter stocks had plunged to levels 58% below year ago during August. Alan Levitt reported Wednesday in his CME Daily Dairy Report that the stocks-to-use ratio for butter is the lowest since 2001.
Butter was pegged on the CME at $2.2250/lb. Wednesday, Sept. 22.
Cheese inventories, on the other hand, remain above year ago, but did shorten a bit in August under previous highs.
Total cheese stocks, according to USDA’s Cold Storage Report, were 1.034 billion lbs., up 4% from last year. Blocks were quoted at $1.75/lb on the CME Wednesday (Sept. 22) and barrels at $1.7350/lb.
Class III milk futures softened from earlier advances this midweek.