News

Down week for dairy

After sliding all week, cash cheese prices gained a half-cent each on the Chicago Mercantile Exchange on Friday. Nonfat dry milk increased three-quarter cent and the April, May and June Class III contracts increased as well. The rest of the 2014 Class III contracts were lower.

For the week, cash cheese barrels lost 14.5 cents, blocks fell 16 cents, butter held steady and nonfat dry milk lost 9 cents per pound. Class III for April increased 8 cents, May added 54 cents, June up 49 cents while October lost 31 cents.

Overall milk production is increasing slightly across much of the United States as the weather has become more comfortable for cows. The one exception is in Arizona where it has been hot. Additional pressure on prices from the World Agricultural Supply and Demand Estimates on Wednesday which raised projected U.S. milk production for the year citing strong prices which will prompt farmers to add cows and push for more production. On the “plus” side, they also raised the projected prices for cheese, butter and milk.

USDA reports 4 billion pounds of packaged fluid milk products were sold in the U.S. in February, down 2.1 percent compared to February of last year. Conventional milk sales were down 3 percent while organic fluid milk sales were up 18.5 percent from a year ago.