Dairy News for 11-19-09

September US cheddar cheese (296%), butter (63%), nonfat dry milk (35%) and whey (7.8%) exports were all significantly less than the prior year. Since then however, the US dollar has continued to depreciate, the EU has reduced subsidies on dairy exports and international dairy prices have soared. All of these factors are bullish for US dairy exports and markets. Current US cheddar ($.17) and butter ($.40) prices are at considerable discounts to the corresponding international markets. There are signs, though, that the cheese and butter markets could temporarily top soon.