Butter continues to push higher on the Chicago Mercantile Exchange closing at $2.11 on Monday, the highest price since May of 2004. The market moved on two sales, the first at $2.055 and the second at $2.11. There were no bids unfilled and no offers left uncovered.
Dairy Market News says cream supplies are tight and butter makers are selling cream to other uses, churning that is occurring is not keeping up with demand causing a further pull-down of inventories.
Meanwhile, Cooperatives Working Together (CWT) accepted six requests from members for assistance in selling cheese and butter to customers in Europe, the Middle East, and North Africa. The products will be delivered September 2010 through February 2011.
Dairy Farmers of America will receive help in exporting 240,300 pounds of cheese. Darigold had one request accepted for 110,200 pounds of butter, CDI/Challenge had two requests accepted for 2.5 million pounds of butter, and Land O’Lakes had one request for 555,600 pounds of butter and one request for 123,500 pounds of cheese accepted by CWT.
Since CWT reactivated the Export Assistance program in March 18, 2010, it has assisted members in making export sales of Cheddar, Monterey Jack, and Gouda cheese totaling 19,019 metric tons (41.9 million pounds) to 23 countries on four continents. In addition, sales of butter and anhydrous milkfat totaling 14,886 metric tons (32.8 million pounds) have been made to eleven countries on three continents.
Cash cheese held steady with no activity on Monday. Class III futures for the remainder of this year pushed higher while the first half of 2011 keeps slipping. January is now at $14.12, February, March and April are at $14.00 while May and June are at $14.20. The second-half of 2011 runs from $14.50 to $14.94.
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