In Class III trade at the Chicago Mercantile Exchange, milk futures were higher on end of the month short covering, along with follow through from last week’s late activity. March was up $.08 at $13.74 and April was $.07 higher at $13.57, May was up $.13 at $13.66 and June was $.03 higher at $13.87.
Over in the spot market, cash cheese barrels were up $.025 cents to $1.455 per pound. The last bid unfilled was on one load at that price. Blocks were steady at $1.48. There were six loads sold, including two at the closing price and three at $1.49. The last offer uncovered was for one load at $1.49.
Butter was down $.0125 at $1.965. There were two loads sold, one at the closing price and one at $1.97. The last bid unfilled was on one load at $1.9275. The last offer uncovered was for one load at $1.965.
Nonfat dry milk was up $.005 at $.765. There was one load sold at that price and six at $.76. The last bid unfilled was on one load at $.765. The last offer uncovered was for one load at $.77.
Producers made a little less money in January 2016 and paid a little more.
The USDA reports the Prices Received Index was down .7% from December 2015 to 89.2, with a decrease in the crop index cancelling out an increase in livestock. The livestock index was 2.9% higher and the crop index was 3.9% lower. The dairy production index was 80.1%, down 6.4% on the month. The January all milk price of $16.10 per hundredweight was down $1.10 from a month ago and $1.50 from a year ago. The fat test of 3.89% was unchanged on the month. Adjusted for the seasonal factor of 97%, the price was $16.60 per hundredweight.
The Prices Paid Index was up 1% from December, but down 4% from January 2015 at 107.0. Month to month, producers paid more for feeder pigs, feeder cattle, and other services, and paid less for nitrogen, milk cows, diesel fuel, and hay and forages. The price received for milk cows was $1,830 per head, $150 less than last month and down $160 from last year. Beef cattle were $130 per hundredweight, a drop of $34 on the month and $8 on the year. The prices received adjusted base price for all milk sold to plants was $1.80 and the parity price was $52.10.
Both as computed and for parity purposes, the USDA says the 2006 through 2015 average for all milk was $17.90 per hundredweight.