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Milk futures, cash cheese higher

Class III milk futures at the Chicago Mercantile Exchange were up on an oversold bounce after the recent mostly lower activity. July was up $.02 at $15.72, August was $.17 higher at $16.58, September was up $.16 at $16.73, and October was $.11 higher at $16.93.

Cash cheese blocks were up $.015 at $1.525. Four loads were sold, all at $1.525. The last unfilled bid was on one load at $1.52. The last uncovered offer was for one load at $1.54. Barrels were $.0025 higher at $1.3525. 16 loads were sold, including one at $1.3525 and nine at $1.355. The last unfilled bid was on three loads at $1.35. The last uncovered offer was for one load at $1.3525.

Butter was up $.0025 at $2.6425. Two loads were sold, one at $2.65 and one at $2.6475. The last unfilled bid was on one load at $2.6075. The last uncovered offer was for one load at $2.6425.

Nonfat dry milk was unchanged at $.845. One load was sold at $.845. The last unfilled bid was on three loads, all at $.845.

The USDA says milk production over the past week was steady to lower in the Midwest, but supplies remain ample overall. Class I demand in the region has declined, while cream demand from ice cream manufacturers has increased. Butter production was reported as active to light, with some manufacturers continuing to push supplies into storage, while others slow down or shut down to do maintenance or sell cream for Class II needs. Cream multiplies were strong. The USDA says butter stocks are at seasonal highs, but while there’s plenty of salted butter, unsalted supplies are tight in some areas. Butter demand is moderate to good. Cheese production was higher in the Midwest, even as natural cheese stocks hit new record highs because of the high milk production levels we’ve seen for most of this year. At the retail level, the price spread between organic and conventional half gallons of milk is $1.25, in favor of organic.

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