Wednesday's butter trading at the CME Group was unchanged at $2.2250. Tuesday saw the market go up $.0025 on sales of two loads. The current price matches the year's highest level. Butter supplies remain tight and prices are firm. Cream supplies are increased and multiples are lower. Butter manufacturers continue to fill orders from a mix of fresh butter and drawing from stored inventories. Demand is described as good for immediate needs with butter producers looking to determine fall and holiday season needs as soon as possible to assure delivery. According to the CME Group, weekly butter stocks in CME approved warehouses decreased 2.7 million pounds last week to 23.5 million pounds. This total compares to 92.3 million pounds in 2009 and 67.5 million pounds in the comparable week in 2008. Since the Memorial Day week, stocks have reduced every week for a total reduction of 44.9 million pounds. The current level in storage at CME approved warehouses is the lowest level
since the first week of 2005. According to the NASS Cold Storage report, stocks of butter as of August 31, 2010, total 151.8 million pounds, -42% or 107.7 million pounds less than August last year. Stocks were 22% lower or 41.7 million pounds less than July 2010. Prices for bulk butter range from flat to 3.5 cents under the market, based on the CME with various time frames and averages used.
Many consider the CME butter numbers to be more indicative of supply than USDA's numbers.
No comments:
Post a Comment