Cheese spot and futures prices firmed in the past week on signs of improved export demand and some disruptions to production due to COVID-absenteeism. While the futures forward curve is backward dated with the solid lift in spot prices, this has lifted the front end of the cash-settled curve to near US$5,250/t, but it weakens just US$100/t for the October 2022 contract. Barrel spot prices were more than US$100/t stronger than blocks.

The butter market remained firm with improved food service demand and ice-cream production starting to kick-in to absorb more cream. Cream multiples have been firmer in recent weeks according to USDA reporting, with reported cream prices the highest in several years.

NFDM prices have languished well behind the recent surges in EU and NZ prices, with difficulties in export logistics as well as reports of push-back by Mexican buyers at prevailing prices.