In the commodity trading arena today, whey and nonfat dry milk (NDM) took the spotlight in Chicago, showcasing notable price movements.
Whey and Nonfat Dry Milk Surge
Whey Prices: Whey prices rose to $0.5400 per pound, marking the highest level since June 2022. This one-cent increase highlights a significant upward trend in the whey market.
NDM Prices: Nonfat dry milk also saw a boost, reaching $1.2350 per pound, up by $0.0150, with 12 loads exchanged. This reflects a strong demand in the market.
Cheese Market Movements
Cheese Prices: The cheese market inched closer to the $2 mark. Block cheese settled at $1.9400 per pound, adding one cent, while barrel cheese finished at $1.9750, up by $0.0150. These movements indicate a steady increase in cheese prices.
Futures Trading
Class III Futures: August futures rose to $20.43 per hundredweight, up 17 cents. September and October futures are trading above $21, reflecting optimism in the dairy market.
Class IV Futures: Class IV futures remained largely steady, with Q4 prices settling at $21.41 per hundredweight, adding eight cents. This stability suggests a balanced outlook for the near future.
Global Comparison
Domestic Cheese Prices: The average domestic cheese price this week was $1.95 per pound, which is higher than New Zealand’s $1.91 but lower than Europe’s $2.11. This places the U.S. in a competitive but not leading position in the global cheese market.
Nonfat Dry Milk Prices: U.S. nonfat prices are uncompetitive at $1.22 per pound, compared to New Zealand’s $1.14 and Europe’s $1.15. This disparity highlights the higher cost of U.S. milk powder on the global stage.
The U.S. milk powder market remains the most expensive globally, affecting its competitiveness in the international arena. As whey and cheese prices rise domestically, the overall cost structure continues to challenge U.S. positioning against global counterparts.
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