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Milk futures bounce back

Futures Markets copy

In Class III trade at the Chicago Mercantile Exchange, milk futures were higher on short covering and oversold signals. June was $.18 higher at $12.48, July was up $.13 higher at $12.93, August was up $.07 at $13.64, and September was $.16 higher at $14.45.

Over in the spot market, cash cheese barrels were down $.025 at $1.335 with a total of ten loads sold. The last bid unfilled was on one load at $1.34. Blocks were unchanged at $1.315 with a total of three loads sold. The last offer uncovered was for one load at $1.315.

Butter was up $.01 at $2.07. The last bid unfilled was on one load, also at $2.07.

Nonfat dry milk was $.015 higher at $.815. The last bid unfilled was on one load at that price. The last offer uncovered was for one load at $.825.

The USDA says that cream supplies are readily available for butter processing with supplies increasing along seasonal lines. Central region churning is steady to a little lower, with many processors reportedly microfixing bulk butter.

Cheese trade was mixed, very active in the Midwest, especially for processed cheese, and many manufacturers are running full schedules. The USDA does add domestic retail demand may be strong, but export demand is lacking.

Fluid milk production varied, depending on the region. The North Central production pace is said to be showing no signs of slowing, but areas further south are slowing as temperatures rise.

Conventional dairy ads were down 9% on the week, while organic ads dropped 50%. The price spread for half gallons of organic and conventional milk is $2.58.

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