Market News

Milk futures mostly lower, cash cheese steady

Class III milk futures were mostly lower, giving back part of Tuesday’s gains, on spread trade and profit taking. June was the exception, up $.08 at $12.68, July was down $.07 at $13.12, August was $.07 lower at $13.80, and September was down $.07 at $14.47.

In the spot market, cash cheese was unchanged. Barrels were steady at $1.3925 and blocks held at $1.34.

Butter was unchanged at $2.08. The last offer uncovered was for one load at $2.10.

Nonfat dry milk was down $.0125 at $.77 with two loads sold, including one at the closing price. The last bid unfilled was on one load at $.765. The last offer uncovered was for one load at $.77.

The USDA says that for the week ending May 21st, butter averaged $2.05 per pound, up three tenths of a cent on the week. 40 pound blocks of cheddar came out at $1.37, 4.5 lower, and 500 pound barrels averaged $1.36, a decrease of 6.2 cents. Dry whey was pegged at $.249, down four tenths of a cent. Nonfat dry milk averaged $.784 3.3 cents higher.

Dairy Management Incorporated reports U.S. dairy exports during the first quarter of the year were equivalent to 12.6% of milk solids production, compared to 13.4% for the first quarter of 2015. However, DMI notes, the year ago numbers were higher after West Coast ports cleared a backlog of shipments caused by the dock strike. Imports were equivalent to 4% of milk solids production. DMI says since 2000, dairy production imports have been 3.8% of domestic solids production, with a peak of 5.4% at the start of 2006.

USDA reports that at Springfield Missouri’s Livestock Marketing Center Special Dairy Sale, the supply was light, including two herd dispersals, and demand was good. Estimated receipts of 446 head were down on the month and the year. Supreme springer heifers, bred seven to nine months, brought $1,400 to $1,625 with crossbreds at $1,300 to $1,375. Supreme heifers bred three to six months sold at $1,300 to $1675 with crossbreds at $1,350 to $1,435.