Market News

Milk futures, cash cheese lower

Class III futures at the Chicago Mercantile Exchange were pressured by profit taking after a couple of days of gains. May was down $.03 at $15.58, June was $.17 lower at $16.21, July was down $.21 at $16.68, and August was $.10 lower at $17.10.

Cash cheese blocks were $.015 lower at $1.635. Two loads were sold at $1.6225 and one at $1.63. The last unfilled bid was on one load at $1.635. The last uncovered offer was for one load at $1.64. Barrels were down $.03 at $1.53. Five loads were sold, all at $1.53. The last unfilled bid was on one load at $1.51. The last uncovered offer was for three loads at $1.53.

Butter was up $.0225 at $2.2625. Three loads were sold, all at $2.2625. The last unfilled bid was on two loads at $2.25. The last uncovered offer was for one load at $2.2625.

Nonfat dry milk was unchanged at $.8625. The last unfilled bid was on one load at $.8625. The last uncovered offer was for 10 loads at $.89.

The USDA reports milk production over the past week was mixed, higher in the Midwest. Bottling demand is steady to lessening as schools get ready for summer break. Spot Class III prices are $4 to $6 under Class in the Midwest, with some loads of condensed skim moving from the Eastern region into the Central. There’s plenty of milk available for cheese processing with Midwestern cheesemakers at or near capacity and increasing cheese demand across the U.S. Butter production in the Central region is called mixed, mostly steady, with manageable to rising stocks and steady to lower retail demand. At the retail level, conventional dairy ads were down 13% on the week, with organic ads 6% lower. The price spread between organic and conventional half gallons of milk is $1.96, in favor of organic.