Dairy markets declined on Friday on the Chicago Mercantile Exchange. Cash cheese barrels down 1.25 cents to $1.6375, blocks down 1.25 cents to $1.6875. Butter gained a half-cent to $1.505, Grade A nonfat dry milk lost a half-cent at $153 and Class III futures for February lost 22 cents, March dropped 33 cents and April fell 28 cents.
For the week cash cheese barrels down 3.5 cents, blocks down 3.25 cents, butter lost a nickel and Class III futures for January through April lost an average 32 cents.
The trend continues, more milk, more cheese being made and buyers are holding-off as prices go down. More spot loads of milk were showing up at $1 to $3 below class price this week and Dairy Market News says more milk has to travel further to find a home. A week ago the spot loads were selling at class price.
USDA reports dairy cow slaughter reached 3.1 million head in 2012, the highest level since they started keeping the statistic in 1986. The 2012 slaughter is up 6 percent from 2011, culling in the Southwest and Northeast was heavier while the Upper Midwest was lighter compared to a year earlier.