Milk futures, cash cheese higher
Class III milk futures at the Chicago Mercantile Exchange were higher with summer months supported by expectations for declining milk production and good product demand. July was up $.03 at $15.62, August was $.10 higher at $16.65, September was up $.04 at $16.98, and October was $.01 higher at $17.10.
Cash cheese blocks were $.025 higher at $1.675. Three loads were sold, including one at $1.675. The last unfilled bid was on one load at $1.675. The last uncovered offer was for one load at $1.69. Barrels were up $.025 at $1.475. Six loads were sold, three each at $1.45 and $1.47. The last unfilled bid was on one load at $1.475. The last uncovered offer was for three loads at $1.48.
Butter was $.015 higher at $2.60. A total of 19 loads were sold, including 13 at $2.60. The last unfilled bid was on one load at $2.60. The last uncovered offer was for one load at $2.605.
Nonfat dry milk was down a $.005 at $.8625. 10 loads were sold, including three at $.865 and three at $.8675. The last unfilled bid was on one load at $.8625.
The USDA reports milk production over the past week was down in the Midwest, limited by high temperatures. Domestic and export butter demand is strong, reflected in the recent interest in the cash market. Cream multiples are mixed and so is availability, better in some areas than in others. the USDA says production is strong to off, with some butter makers choosing to sell cream on the spot market. Milk intakes for Class III processing are steady to slow, along seasonal lines. Some Midwestern cheesemakers are increasing curd production. Inventories are called long, especially for barrels. At the retail level, conventional dairy ads were up 7% on the week and organic jumped 27%. The spread between organic and conventional half gallons of milk is $1.95, in favor of organic.
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