Market News

Milk futures mostly lower, cash cheese higher

In Class III trade at the Chicago Mercantile Exchange, milk futures were mostly lower on spread trade and profit taking. April was the exception, up $.03 at $13.81, while May was down $.03 at $13.98, June was $.06 lower at $14.05, and July was down $.07 at $14.29.

In the spot market, cash cheese was higher. Barrels were up $.0025 at $1.455 with eight loads sold. The last bid unfilled was on one load, also at $1.455. Blocks were $.01 higher at $1.47. There were two loads sold, one at the closing price and one at $1.46. The last bid unfilled was on one load $1.46.

Butter was up $.005 cent at $1.96 with one load sold. The last bid unfilled was on two loads at $1.90. The last offer uncovered was for one load at $1.965.

Nonfat dry milk was $.0025 higher at $.7175. The last bid unfilled was on one load at that price.

The USDA says U.S. butter production continues to be strong with many manufacturers at full capacity. Most of those processors are reportedly focusing on bulk butter and inventories are building. In the Central region, butter demand by retailers is down after Easter and food service demand is flat.

Cheese production is called active across the country with many in the Midwest and Northeast at or near full capacity due to the increase in milk production. The USDA says some Midwest processors are selling excess loads of spot milk at $2 to $3 below the class price. Several Midwestern cheese plants are reportedly starting to see rising order volume.

Fluid milk production is higher and in the Central region, that’s keeping plants extremely busy. Bottling demand is steady to higher as schools come back from vacation. Cream supplies are steady and available.

Total conventional dairy ads were down 13%, but a few sectors were up on the week. 32 ounce containers of conventional yogurt were up 253%, 32 ounce containers of Greek were 223% higher and ads for two pound blocks of cheese increased 206%. Ads for 1 pound boxes of conventional butter were down 57%.