Milk futures, cash dairy higher
Class III milk futures at the Chicago Mercantile Exchange saw an oversold bounce. March was up $.05 at $15.73, April was $.32 higher at $15.28, May was up $.29 at $15.40, and June was $.24 higher at $15.84.
Cash cheese blocks were up $.04 at $1.40. There was one load sold at $1.40. Barrels were $.015 higher at $1.365. There were a total of 10 loads sold, including one at $1.365 and seven at $1.36.
Butter was up $.02 at $2.13. There were seven loads sold, six at two thirteen and one at two eleven. The last unfilled bid was on five loads at two thirteen.
Nonfat dry milk was $.01 higher at $.805. The last unfilled bid was on one load at $.805. The last uncovered offer was for two loads at $.81.
The USDA reports fluid milk production was higher over the past week, continuing to follow the seasonal trend. Distribution in parts of the Eastern region was hampered by late winter storms. Class I demand has slowed with many schools either on Spring Break or very close to it. Class II demand in the Midwest is mixed and cream is plentiful with many manufacturers opting to make butter instead of sell the excess.
Butter production across the U.S. is active and inventories are building. Central region demand is strong, but may not actually be strong enough to keep stocks from building too quickly.
Cheese making is corresponding to available milk volumes, but some buyers are waiting to see if cash prices continue to fall. Overall inventories are called heavy.
At the retail level, conventional dairy ads were down 6% and organic ads were 29% lower.
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