Dairy markets holding still

Not a lot of activity in the cash dairy markets this week. Prices have held steady with only one sale and one offer in the cheese market and nothing has happened in butter. Not much product making it to the CME as milk intakes continue to be on the low side and buyers aren’t looking to build inventories at these prices.

Dairy Market News reports some additional cream was available over the Labor Day weekend allowing the churns to increase operating schedules but butter makers continue to draw on inventories to meet current orders. The big question in butter right now is at these prices, will consumer demand start to back-off? You don’t want to be sitting on a lot of overpriced inventory you can’t sell but the general thought is prices will remain firm for the remainder of the year.