Cash cheese barrels slipped 3.75 cents on the Chicago Mercantile Exchange on Wednesday while blocks increased another penny. A busy day with 9 loads sold, 6 barrels and 3 blocks. Butter gained another 4 cents on 9 sales. The monthly Cold Storage Report on Tuesday showing that butter stocks continue to decline and are just over half what they were a year ago.
Dairy Market News says cheese supplies are so tight in the Midwest, some manufacturers are telling customers they will have to reduce their orders for August deliveries. There is no consensus reason as to why supplies are that tight, some say heavier demand, some say less cheese being made. Milk supplies are flat-to-reduced and spot loads are hard to come by.
In the Northeast the cheese factories says milk intakes are strong but components are down. Demand for cheese is steady to increasing. Out west milk production is declining as the hot weather sets-in. Domestic demand is good but export demand has slowed.
National Dairy Products Sales Report for the week ending July 19th; cash cheese blocks decreased 2.2 cents to average $2.01, barrels were 1.5 cents lower at $2.04. Butter increased 5.6 cents from the previous week to average $2.37 per pound, nonfat dry milk 1.4 cents lower at $1.87 and dry whey decreased 0.1 cent at 68.7 cents per pound.
The Advanced Base Class I price for August is $23.87 up 85 cents from the previous month. Base Skim Milk Price for Class I for August is $15.22 per hundredweight up 21 cents from the previous month.