A couple of unfilled bids pushed cash cheese prices higher on the Chicago Mercantile Exchange on Tuesday. Barrels increased 4.25 cents to $1.565 and blocks added 3.5 cents to $1.65. Cash butter gained 1.25 cents on an unfilled bid and Grade A nonfat dry milk increased a half-cent. Class III futures jumped in response pushing the August, September and October contracts over the $17.00 mark.
The monthly World Agricultural Supply and Demand Estimates from USDA increased total milk production for 2012 to 202.2 billion pounds as the reduction in cow numbers is not happening as quickly as predicted. The 2013 production estimate is unchanged from last month at 202.6 billion pounds. Export projections were raised for both years as cheese and nonfat dry milk sales are stronger than expected.
The cheese price forecast for 2012 nudged a little higher at $1.565 to $1.605 per pound. The butter price margin narrowed a half-cent on each end, now estimated at $1.43 to $1.50. The nonfat dry milk and whey price estimates were lowered for 2012.
The Class III milk price estimate for 2012 was lowered 5 to 15 cents at $15.75 to $16.15. Class IV is 15 to 25 cents lower at $14.35 to $14.85 and the all milk price was reduced 5 to 15 cents at $16.85 to $17.25 per hundredweight.
The 2013 price estimates were unchanged from last month; Class III is expected to run between $16.20 and $17.20; Class IV $15.40 to $16.50 and the all milk price from $17.25 to $18.25 per hundredweight.
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