And so ends another tough week for dairy producers. While the cash cheese blocks moved three-quarters of a cent higher on Friday, the first move since May 13th, Class IIIfutures continued to slide. Since May 1st, the June 2009 contract has lost 65-cents, July is $1.28 lower and August is down $1.13.
USDA Ag Market News says milk production across the country is at or near seasonal peak. Cheese plants are running pretty close to fullcapacity and additional milk is expected over the long holiday weekend. The one exception is California where milk production is running below year ago levels and plants are keeping pace. Remember a year ago milk from the Golden State was being shipped to processing plants across the country.Production in Arizona has backed off a bit as well, the result of two weeks of 100-degree-plus temperatures. Commodity Credit did purchase another 2.37 million pounds of Western nonfat dry milk during the week. Since October 1, 238.4 million pounds of nonfat dry milk and 4.6 million pounds ofbutter have been purchased by CCC.
Dairy cow slaughter in April was 215,000, 4,000 less than April of last year and down 23,000 head below March. Of the 215,000 sent to market, 68,600 were from the Midwest and 58,800 from the West. For the January through April period,978,000 dairy cows were sent to slaughter, 94,000 more than the same period in 2008.
Fluid milk sales in March totaled 4.8 billion pounds, 2.6% more than March of last year. There were increased sales of flavored whole, organic whole, 2%, 1%, skim, flavored fat-reduced,organic fat-reduced and buttermilk. Sales were lower than a year ago for whole milk.


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