Cash cheese blocks slipped another 2.25 cents on the Chicago Mercantile Exchange during a shortened session on Thursday. So that much-feared 27-cent barrel-to-block spread quickly narrowed to 12.75 cents. After dropping on Wednesday, Class III futures actually regained a little on Thursday.
Should be a rather interesting few days for milk processors. With schools closed down for the holidays, more milk is available for manufacturing but the big winter storm moving through the Midwest and Northeast is bound to disrupt the supply flow.
Dairy producers sent 208,900 dairy cows to slaughter in November, that is 1,000 more than during November of 2008 but 18,000 less than went to market in October. 70,300 came out of the upper Midwest, 62,200 out of the West. From January through November, 2.584 million dairy cows have gone to slaughter, 222,000 more than the first 11 months of 2008. Just under 790,000 were out of the upper Midwest while 775,000 came from the West.
The USDA Foreign Ag Service says cheese imports for the first 11 months of 2009 totaled 183.1 million pounds. That is about 7 percent above the same period in 2008. Imports of high-tier cheese, that which is above quota and with a penalty, 21.1 million pounds. Down 26 percent from the first 11 months of 2008.
Dairy Market News says European milk production has hit its seasonal low. Most countries are running below previous year levels although German production is nearly 2 percent above last year. Prices for European dairy products are lower in recent months. A weak Euro compared to the dollar, good supplies and light demand contributing to the decline.
Milk production in Australia and New Zealand is declining seasonally. New Zealand production is running about 1-1.5 percent above last season…which is below the predicted 2-3 percent increase. Australian milk production is running 5 percent below a year ago. Some processors report supply gaps.
Latest: 
