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Milk futures, cash cheese lower

Class III futures at the Chicago Mercantile Exchange were lower on profit taking after Thursday’s gains. May was down $.15 at $15.35, June was $.17 lower at $15.47, July was down $.12 at $15.98, and August was $.10 lower at $16.39.

Cash cheese blocks were $.0425 lower at $1.48. One load was sold at $1.4925. The last uncovered offer was for one load at $1.48. Barrels were down $.0025 at $1.4175. Five loads were sold, all at $1.4175. The last uncovered offer was for two loads, also at $1.4175.

Butter was $.015 lower at $2.105. Two loads were sold, one at $2.105 and one at $2.115. The last unfilled bid was on one load at $2.1025. The last uncovered offer was for one load at $2.115.

Nonfat dry milk was down $.01 at $.8675. Six loads were sold, including one at $.8675 and two at $.865. The last unfilled bid was on one load at $.8625. The last uncovered offer was for one load at $.87.

The USDA says milk production during the past week was strong, holding above last year’s levels in a lot of the biggest production areas. Bottling orders are steady for most of the U.S. According to USDA, some Midwestern cheesemakers that would normally turn away spot milk are taking advantage of Class III offers $1.50 to $5 below Class. Cheese inventories are large and growing, while demand is about steady. Butter churning is active and cream is readily available for most of the U.S. Butter stocks are steady to higher and demand is mixed. At the retail level, conventional dairy ads were down 35% and organic dropped 52%. The current price spread between organic and conventional half gallons of milk is $1.27, in favor of organic.

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