Market News

Milk futures mixed, cheese production up on year

In the spot dairy market Wednesday, cash cheese barrels were unchanged at $1.45. Blocks were up a penny at $1.47, with one load sold.

Butter was six cents higher at $2.16. There were a total of seventeen loads sold, from $2.10 to $2.19. The last bid unfilled was on two loads at $2.15.

Grade A nonfat dry milk was $.015 higher at $.71. The last bid unfilled was on one load at that price.

At the Chicago Mercantile Exchange, Class III milk futures were mixed. February was down $.01 at $13.90 and March was up $.09 at $13.97, while April was $.01 higher at $13.98 and May was up $.02 at $14.29.

The USDA says the Class II price for January was $14.19 per hundredweight, down $2.52 from December, Class III was $13.72, $.72 lower, and the Class IV price was $13.31, $2.21 less. During January, butter averaged just over $2.075 per pound, nonfat dry milk averaged $.78, the cheese average was $1.52, and dry whey averaged $.235.

For the week ending January 30th, butter averaged $2.15 per pound, up almost $.04. Blocks of cheddar were reported at $1.50, up a tenth of a cent, and barrels, adjusted for 38% moisture, came out at $1.54, down $.02. Dry whey was pegged at $.238, four tenths of a cent higher, and nonfat dry milk averaged $.77 cents, up two tenths.

U.S. cheese production during December 2015 was 1.022 billion pounds, up 1.2% from December 2014. Italian type cheese was 452.826 million pounds, up 3.1% on the year, and American cheese was 397.436 million pounds, seven tenths of a percent higher. December butter production was 177.058 million pounds, 4.3% above last year.

Nonfat dry milk production, for human consumption, came out at 147 million pounds, down 10%, with skim milk powders at 45.4 million pounds, up 5%. Dry whey was pegged at 94 million pounds, 25% larger, with lactose at 87.4 million pounds, down 5%, and whey protein concentrate at 40 million pounds, 15% lower.

Regular ice cream production was reported at 55 million gallons, a 5% increase, and lowfat was pegged at 24.3 million gallons, an 11% decrease.