Market News

Cash cheese steady, butter increases

No activity in the cash cheese market on the Chicago Mercantile Exchange on Thursday. Cash butter increased 4.5 cents on one unfilled bid while nonfat dry milk slipped a half-cent on 3 sales and 2 unfilled bids all at 99 cents.

The Class III futures rebounded; January increased 48 cents to go back over $16, February added 28 cents, March and April increased 30 and 34 cents respectively putting both over $15 again.

 

Dairy processors report a lot of milk coming it with spot loads in the Central U.S. available for $2 to $7 under Class. Plants are running at or near capacity.  Bottling orders are steady in the Midwest but are expected to drop-off next week as schools close down for the holidays.  Bottling plants in the Southeast have already cut-back on production in fact Florida did not import any milk this week after bringing 90 loads in last week.  Milk production is trending higher in the Northeast and Mid-Atlantic states.

The recent heavy rains in California are causing some problems for dairy cows in dry lots. It takes more energy for the cows to move around in the mud and they are reluctant to lay down.  The latest Drought Monitor says the area of the Golden State in Exception Drought has declined from 8.45 percent last week to 5.4 percent this week.

Milk production in the Northwest, Idaho and Utah is steady to increasing as mild weather is making the cows comfortable. There are concerns with the dry fall and lack of snowfall so far.

 

Weekly dairy cow slaughter for the week ending November 29 was 46,100, 2,400 less than went to slaughter the comparable week a year ago.