Market News

Milk futures mostly lower, cash dairy mixed

In Class III trade at the Chicago Mercantile Exchange, milk futures were steady to lower on profit taking and the higher USDA production outlook. June held at $13.25, July was down $.50 at $14.54, August was $.38 lower at $15.33, and September was down $.45 at $15.68.

Over in the spot market, cash cheese barrels were up $.005 at $1.51 with a total of two loads sold, one at the closing price. The last offer uncovered was for one load at $1.52. Blocks were steady at $1.475. The last bid unfilled was on one load at that price.

Butter was $.02 lower at $2.20 with one load sold at that price.

Nonfat dry milk was $.025 higher at $.83. There were a total of eleven loads sold, including six at the closing price. The last bid unfilled was on one load at $.8275. The last offer uncovered was for seven loads at $.84.

In the monthly supply and demand report, the USDA made a slight increase to its 2016 milk production estimate. The new projection is 212.6 billion pounds, on increased dairy cow numbers and a steady per cow production figure. Fat and skim basis exports were lower because of large available global supplies.

The average price for all types of milk is estimated at $14.95 to $15.35 per hundredweight, up on the month because of higher expected prices for cheese and butter. Class III is pegged at $13.40 to $13.80 and Class IV is seen at $13.15 to $13.65. Cheese prices are now projected at $1.475 to $1.515 per pound with butter at $2.05 to $2.12. Nonfat dry milk is estimated at $.76 to $.80 with dry whey at $.24 to $.26.