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Cash cheese continues to slide

Cash cheese prices continue to slide on the Chicago Mercantile Exchange. Barrels slipped a quarter-cent to $1.8325 on Monday but blocks dropped another 6.25 cents to close at $1.8575. There were 14 loads of blocks sold.

In the last week, cash cheese barrels have lost 23.75 cents and blocks have fallen 25.25 cents and the December Class III has dropped $1.22. Ironically, the November Class III futures are up 61 cents.

Traders just seem a little nervous about just how big of an impact Hurricane Sandy is going to have on dairy product sales. Still a lot of people who did not have electricity in the Northeast last week and that means they weren’t buying cheese and yogurt and other items which require refrigeration.

Milk production in New Zealand and Australia is reportedly at or near seasonal peaks. Dairy Market News says handlers report the peaks are above year-ago levels as weather conditions are conducive to milk production. Processors are reportedly very near full capacity. Right now they are projecting milk production to be 3 to 4 percent above last year in New Zealand and around 2 percent higher in Australia.

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