Market News

Another good day in the dairy markets

Cash cheese barrels gained 3 cents, blocks up 4.75 cents and butter increased 4.75 cents on the Chicago Mercantile Exchange on Thursday. Class III futures were higher from August through February, 2016.

Hotter weather is slowing milk production in the Midwest while the Northeast is holding steady. Florida shipped 35 loads out of state this week while California production is steady to lower.

Butter has increased 9 cents in the last two days. Dairy Market News says production is strong but some are finding it more lucrative to sell the cream than run it through the churns. There also reports food service and retail sales are increasing. Butter makers in the east says bulk prices are running 5 to 6 cents above the CME. Western markets have bulk loads from 4 cents under to 5 cents over market. The U.S. weighted average advertised price for a pound of butter is $3.26 up 24 cents from a week ago and 22 cents above a year ago.

Dairy cow slaughter totaled 221,500 head in June, up 7,500 from May and 22,000 above June of last year. For the January through June period dairy cow slaughter under federal inspection totaled 1,456,700; 65,400 more than in the first six months of 2014.

The House passed H.R. 1599; the Safe and Accurate Food Labeling Act. The bill establishes a national standard allowing food companies to label a product “non-GMO” if they so-choose. It does not require labeling if a product contains genetically modified ingredients. The national standard would supersede any state GMO labeling laws. There is currently no similar bill in the Senate.

National Milk Producers Federation president and CEO Jim Mulhern: “Today’s bipartisan vote demonstrates the broad support for voluntarily labeling foods with GM ingredients. A patchwork of state-by-state labeling requirements is simply not an option, as testimony at several congressional hearings clearly showed.”