Market News

Quiet end to the week in the dairy markets

Very little activity in the dairy markets on the Chicago Mercantile Exchange on Friday. Prices all held steady as well while Class III futures nudged a little higher.

For the week, cash cheese barrels lost a quarter-cent, blocks are unchanged, butter gained 2 cents and nonfat dry milk increased three-quarter-cent.  Class III futures for May lost 34 cents, June fell 52 cents, July lost 70 cents.

The national weighted advertised price for a half gallon of organic milk is $3.40 down 35 cents from the previous week.  A half-gallon of conventional milk is $1.77 down a dime.  That puts the organic-to-conventional spread at $1.63 down 25 cents from the previous week.

Milk production in Western Europe is increasing seasonally but still behind year-ago levels.  Despite an end to production quotas a month ago, increases have been below expectations.  Eastern European production is increasing and is running ahead of year-ago levels.

Citing expected production increases in Europe, the United States and New Zealand along with weak global demand; Fonterra cut its forecasted farmgate milk price another 20 cents (nz).  The cooperative estimates farmers will get $4.50 per kilogram of milk solids.  This is in addition to a 60-cent cut last December.