Market News

Dairy markets moderate

A mixed day to close out the week at the Chicago Mercantile Exchange dairy markets. Cheddar cheese blocks increased 3 cents on Friday pulling Class III futures higher with it. Butter lost 3.75 cents and nonfat dry milk was 1.25 cents lower on the day.

For the week, cash cheese barrels increased a quarter-cent, blocks lost 4.75 cents, butter slipped 8.25 cents and nonfat dry milk fell 5.5 cents. Class III futures for October gained a dime, November added 20 cents, December is 24 cents higher and April increased 18 cents.

The butter market mellowed-out after seeing a record-high two weeks ago and sharp drops last week. Dairy Market News says churning activity is active and while some are concerned about holding some high-priced inventory, most are “fairly satisfied” with the current stock balances.

Buyers of both butter and cheese were a bit reluctant to make purchase as prices fluctuated over the week.

For the second consecutive week, Florida imported 220 loads of milk to help fill Class I demand. Some increased bottled milk demand attributed to Hurricane Joaquin.

For the third month in-a-row; total sales of organic fluid milk products in July were below year-ago levels. Part of the problem is the tight supply of organic milk. The spread between the prices of a half-gallon of organic milk and a half-gallon of conventional milk is the largest it has been all year. The national average price for a half-gallon of organic was $4.49, the highest of the year while a half-gallon of conventional milk hit the lowest price of the year: $1.16. That puts the organic-to-conventional spread at $3.33.

 

National Milk Producers Federation expressing support of a court ruling putting a hold on implementation of the EPA’s Clean Water Rule. NMPF had submitted comments on the proposed rule saying it lacked clarity and certainty for dairy producers. The organization says dairy producers are committed to protecting U.S. waterways and are willing to work with the EPA and Army Corps of Engineers to achieve that goal.