European Butter and Cheese Prices Command Premium Amid Global Market Movements
Source: DairyNews.today
European butter and cheese prices continue to command a significant premium compared to global counterparts, maintaining a notable edge in dairy markets. While U.S. cheese and butter prices saw minor fluctuations on the Chicago Mercantile Exchange (CME) today, European products stayed at the top end of the price spectrum, driven by strong demand and limited supply.
In the latest CME trading, block cheese prices dipped by 0.5 cents, closing at $1.89 per pound, while barrel cheese rose by 3.5 cents to $1.9250 per pound, with two lots traded in each category. Butter prices climbed by 1.5 cents, reaching $2.7050 per pound with five loads exchanged, reflecting ongoing volatility in the U.S. market.
Meanwhile, EU cheese averaged $2.46 per pound, significantly above New Zealand's $2.13 and the U.S.'s $1.91 per pound. Similarly, EU butter reached an average of $3.74 per pound, contrasting sharply with New Zealand's $2.87 and the U.S.'s $2.69 per pound (adjusted for 80% butterfat content). Market reports indicate that the substantial price gap is bolstering export interest for EU butter and cheese products.
On the futures side, U.S. Class III contracts displayed mixed trends. The nearby contract edged up by five cents to $20.57 per hundredweight, while Q1 2024 prices dropped by 14 cents to $19.63 per hundredweight. Class IV futures demonstrated more consistent upward movement, with November contracts rising three cents to $21.04 per hundredweight and Q1 prices also increasing by three cents to settle at $21.21 per hundredweight.
European dairy products' premium pricing underscores their strong positioning in the global market as buyers seek high-quality imports, supported by steady EU pricing dynamics amidst broader dairy price volatility.
Meanwhile, EU cheese averaged $2.46 per pound, significantly above New Zealand's $2.13 and the U.S.'s $1.91 per pound. Similarly, EU butter reached an average of $3.74 per pound, contrasting sharply with New Zealand's $2.87 and the U.S.'s $2.69 per pound (adjusted for 80% butterfat content). Market reports indicate that the substantial price gap is bolstering export interest for EU butter and cheese products.
On the futures side, U.S. Class III contracts displayed mixed trends. The nearby contract edged up by five cents to $20.57 per hundredweight, while Q1 2024 prices dropped by 14 cents to $19.63 per hundredweight. Class IV futures demonstrated more consistent upward movement, with November contracts rising three cents to $21.04 per hundredweight and Q1 prices also increasing by three cents to settle at $21.21 per hundredweight.
European dairy products' premium pricing underscores their strong positioning in the global market as buyers seek high-quality imports, supported by steady EU pricing dynamics amidst broader dairy price volatility.