Market News

Milk futures higher, cash dairy mostly steady

In Class III trade at the Chicago Mercantile Exchange, milk futures were higher, following the recent trend. July was up $.03 at $15.30, August was $.24 higher at $16.96, September was up $.21 at $16.89, and October was $.17 higher at $16.80.

Over in the spot market, cash cheese was unchanged. Blocks were steady at $1.7075 and barrels held at $1.775.

Butter was down $.0325 at $2.26. There were a total of four trades reported, including two at the closing price. The last unfilled bid was on two loads at $2.25. The last uncovered offer was for one load at $2.2625.

Nonfat dry milk was unchanged at $.845. The last unfilled bid was on one load at $.80.

Recent production rises and heavier export competition have led to increased U.S. dairy supplies. All the major categories in the monthly cold storage report were either unchanged or down a little from the previous month’s report, but were above year ago levels. At the end of June, butter stocks in cold storage topped 326 million pounds, a new record and a 27% year to year increase. The cheese total was 1.252 billion pounds, 10% above a year ago. Out of that total, American cheese, at 759 million pounds, was 11% higher, Swiss, at 25 million pounds, was down a little on the month, but still up 17% on the year, and other types, at 469 million pounds, were 8% larger than a year ago.

The USDA’s Ag Prices report will be out on the 29th.

Next month, the USDA’s upcoming dairy products report is out August 4th, supply and demand estimates are out August 12th, milk production figures are scheduled to be released on the 19th, and the next cold storage will be out August 22nd.