CME spot prices continued to improve across the board in the past week with persistent signs of tightening milk and cream supplies. Spot CME NFDM lifted to US$3,621/t, its highest since July 2014, influenced no doubt by the steadily rising European SMP market as milk in that region remains acutely tight and production signals only get worse. Forward futures prices were flat however, not buying into the global fervour.

Cheddar blocks firmed towards US$4,300/t on the spot market and the futures curve weakened slightly, as the barrel market is a little more fickle, spot volumes trading a hefty US$600/t lower than blocks. The weekly take from around the regions from USDA saw a little tighter milk availability last week. The butter market is also firm with spot prices ahead of US$4,500/t.

The implied Class IV spot milk value continues to run 6% stronger than Class III.

Dry whey prices surged higher to US$1,571/t as the whey streams are tighter and higher-concentrate WPCs continue a strong pull to keep up with demand. WPC usage in the domestic market lifted 23% in the 3 months to October.