No activity on the Chicago Mercantile Exchange cash cheese market on Wednesday but the nonfat dry milk markets moved higher again and Class III futures saw double-digit increases through June 2013. The September 2012 through January 2013 contracts are all over $19.00.
The semi-monthly Global Dairy Trade auction at Fonterra on Wednesday saw anhydrous milk fat contracts up 14 percent from the previous sale. Butter powder prices increased 10.2 percent, milk protein concentrate was up 15.4 percent, skim milk powder increased 7.3 percent, whole milk powder was 7 percent higher and the average cheddar cheese price was 8.8 percent above the last sale. There were no lactose bids.
Cash cheese prices are the highest they have been this year, Dairy Market News says the increases last week prompted some buyers to jump in ahead of any more increases although some have backed-off thinking this may be the top. Milk supply is a bit of a challenge with most spot loads getting $2 to $2.50 premiums in the Midwest. Western plants are now starting to see a reduction in intakes as the hot weather is having an impact from California into Arizona and New Mexico.
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