Post

Milk futures, cash cheese higher

In Class III trade at the Chicago Mercantile Exchange, milk futures were higher, with a more stable tone in the outside markets and higher soybean meal. July was up $.23 at $15.12, August was $.45 higher at $16.31, September was up $.27 at $16.55, and October was $.21 higher at $16.48.

Over in the spot market, cash cheese was higher. Blocks were up $.01 at $1.53 with one bid unfilled at that price. Barrels were $.0175 higher at $1.56, also with one bid unfilled at that price.

Butter was down $.04 at $2.30. There were a total of three loads sold, including one at the closing price. The last bid unfilled was for one load at $2.26.

Nonfat dry milk was up $.0075 at $.90. There were seven loads sold, with three at the closing price. The last bid unfilled was on one load at $.89. The last offer uncovered was for one load at $.90.

According to HighGround Dairy, during May, most New Zealand dairy product exports were up on the year, including a more than 170% jump in infant formula and a 29.5% increase in anhydrous milk fat sales. Exports of cheese, caseinates, and lactose were below year ago levels.

Dairy Management Incorporated reports domestic commercial butter use during the first quarter of 2016 were up 8.4% from the first quarter of 2015, after adjusting for the Leap year. Nonfat dry milk use was down 16% and fluid milk sales were 1.7% lower. American type cheese use declined 0.7%, while other types of cheese increased 8.4%. U.S. exports during April were up and imports were down. On the export side, for February and April, the biggest increase was anhydrous milkfat and butteroil, jumping 289%, while butter dropped 47%. For imports, nonfat dry milk and skim milk powder purchases were 327% higher and casein buys were 21% lower. The imports were equivalent to 3.7% of milk solids production, compared to 4% from the January through March period.

For the week ending June 17th, California’s Department of Agriculture says nonfat dry milk averaged just under $.77, a little bit below the previous week, with sales of more than 8 million pounds, more than 250,000 below the week before.