Market News

Milk futures, cash cheese higher

Class III milk futures at the Chicago Mercantile Exchange were supported by the USDA’s lower production estimate and technical buying. August was up $.08 at $16.47, September was $.23 higher at $17.09, October was up $.25 at $17.30, and November was $.23 higher at $17.21.

Cash cheese blocks were $.0375 higher at $1.7425. The last unfilled bid was on one load at $1.7425. Barrels were up $.0325 at $1.5875. Six loads were sold, including one at $1.5875. The last unfilled bid was on one load at $1.56.

Butter was $.0325 higher at $2.6825. One load was sold at $2.6825. The last unfilled bid was on one load at $2.63. The last uncovered offer was for five loads at $2.6875.

Nonfat dry milk was unchanged at $.85. The last unfilled bid was on five loads at $.84. The last uncovered offer was for ten loads at $.875.

The USDA reports milk production over the past week in the Central region declined slightly, along seasonal lines. The USDA does add the decline is not as large as it has been in previous years, probably because of cooler temperatures and improved feed rations. Cream supplies are a little bit tighter, with a lot of product headed into ice cream manufacturing. Cream is also moving into Class II and IV manufacturing. Butter production is mixed, active for some, idled for others. Retail and food service demand continues to be steady to higher and export demand is increasing as global supplies tighten. Stocks are mixed, ample to decreasing. Milk intake into cheese plants was mixed, with some Midwestern cheesemakers reporting some spot loads are going to areas where schools start early. At the retail level, conventional dairy ads were down 2%, while organic ads were up 2%. The price spread for conventional and organic half gallons of milk is $2.16, in favor of organic.

Add Comment

Your email address will not be published.


 

Stay Up to Date

Subscribe for our newsletter today and receive relevant news straight to your inbox!