Class III futures on the Chicago Mercantile Exchange on Friday more than reclaimed what they gave up on Thursday. Traders saw 10 to 31-cent increases from May 2010 through March 2011 contracts. Thursday’s drop was in reaction to the financial markets. Friday was the busiest day of the week in the cash cheese market with a dozen sales. Barrels and blocks remained unchanged on the day but lost 0.75 on the week. Class III futures for May, June and July also slipped for the week while the remaining 2010 contracts gained.
Dairy Market News reports milk production continues to increase in most areas of the country. The southeast and Mid Atlantic regions are at peak, Arizona and Florida are past their seasonal highs but production is holding steady. California intakes are increasing but not as much as last year at this time. The additional milk is going into manufacturing.
Butter production in the U.S. in 2009 totaled 1.57 billion pounds, 4.3 percent less than in 2008. California accounted for 33.1 percent of the total butter output followed by Pennsylvania with 5 percent. Wisconsin remained the top cheese producing state with 26 percent of the country’s production, California had 20.4 percent.
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