Market News

Dairy trending higher

Dairy markets quietly nudging higher on the Chicago Mercantile Exchange this week.  On Thursday the cash cheese barrels were steady but blocks increased 2 cents, butter gained 4 cents on 6 sales.  Seems the holiday buying is picking-up.

Milk production in the Central U.S. is running ahead of year-ago levels and Dairy Market News says supplies are starting to outpace demand.  Spot loads are going for as much as $2.50 under class.  More milk also means more cream but demand is actually picking up as buyers are taking advantage of the lower prices to fill holiday orders.  Cream premiums are still ranging from $1.15 to $1.30.

Milk production is steady in the Northeast and Mid-Atlantic states.  The Southeast production is also steady but that means Florida is still importing milk, 170 loads brought into the Sunshine State this week, 10 more than last week.

Cooler temperatures and more comfortable cows has California production steady to higher.  Supplies of high-quality alfalfa are tight; recent sales for delivered alfalfa ranged from $320 to $350 per ton.  Dry cow hay is $220 to $235.  Milk production is also picking-up in Arizona and New Mexico as fall brings more comfortable temperatures for the cows.

Production in the Pacific Northwest is above year-ago levels but declining week-to-week.  Dairy plant operators say they are moving milk to keep some plants running at full capacity at the expense of others.

Dairy cow slaughter for the week ending October 11 was 55,300 head down 5,000 from the same week a year ago.