Market News

Milk futures, cash butter higher

Class III milk futures at the Chicago Mercantile Exchange were supported by an oversold bounce. September was $.10 higher at $16.32, October was up $.30 at $16.10, November was $.35 higher at $15.95, and December was up $.30 at $15.81.

Cash cheese blocks were unchanged at $1.64. The last uncovered offer was for two loads at $1.66. Barrels were $.03 higher at $1.57. One load was sold at $1.57. The last unfilled bid was on one load at $1.565. The last uncovered offer was for one load at $1.59.

Butter was up $.0175 at $2.4275. Four loads were sold, including two at $2.4275. The last unfilled bid was on one load at $2.38. The last uncovered offer was for one load at $2.4425.

Nonfat dry milk was steady at $.82. One load was sold at $.82. The last unfilled bid was on one load, also at $.82. The USDA raised its 2017 milk production outlook, expecting solid per cow yields to cancel out a slower rate of herd expansion. This year’s production is expected to be 216.0 billion pounds, compared to the August estimate of 215.7 billion. This year’s price range projection was down slightly from August, now at $17.70 to $17.90 per hundredweight, on that expected increase in production.

The cheese price estimate was up on the month at $1.61 to $1.63 per pound with good domestic demand cancelling out slower exports, supporting the Class III price outlook, now at $16.05 to $16.25 per hundredweight, while the butter price range was slashed to $2.355 to $2.395 on expectations for increased butterfat imports, also pushing the Class IV price range lower to $15.40 to $15.70.

The 2017 nonfat dry milk and dry whey price estimates were lowered, now at $.88 to $.90 and $.445 to $.465, respectively, also on expectations for increased imports.