A relatively quiet end to the week in the dairy markets, cash cheese and butter held steady on the Chicago Mercantile Exchange on Friday while Class III futures were mixed.
For the week, the average cash cheese barrel price decreased 4.2 cents, blocks slipped 3.4 cents, butter increased an average 6.8 cents per pound and the October Class III price gained 4 cents. Supplies of milk for manufacturing are tight, Dairy Market News says plants are having some difficulty finding spot loads. The monthly cold storage report did show an increase in cheese stocks compared to a year ago but domestic and foreign demand is good. The cold storage report did show butter stocks declined in August and while they are well-above year-ago levels, demand is good, the U.S. price is below the world price for butter and cream supplies are tight. Bulk butter prices in the Northwest are reportedly 4 to 8 cents above the CME.
Another factor that is starting to influence the market, forage supplies. Grazers in the Northeast say their pastures are flooded while alfalfa supplies are limited in the Central U.S. where spring planting and growth was delayed by the cool, wet conditions which then turned dry, limiting production to just two crops in some areas. A lot of late-planted corn will be used as corn silage but it is short and being chopped off now before it gets too dry.
© Copyright 2013 Brownfield, All rights Reserved. Written For: Brownfield