Market News

Milk futures, cash dairy higher

Class III milk futures at the Chicago Mercantile Exchange were supported by follow through buying. April was up $.02 at $15.20, May as $.31 higher at $15.64, June was up $.33 at $15.87, and July was $.32 higher at $16.26.

Cash cheese blocks were $.07 higher at $1.545. Five loads were sold, including one at $1.545. The last uncovered offer was for one load at $1.555. Barrels were up $.0425 at $1.4275. A total of 22 loads were sold, including one at $1.4275 and eight at $1.3825.

Butter was $.0225 higher at $2.09. Four loads were sold, including one at $2.09. The last unfilled bid was on one load at $2.0575. The last uncovered offer was for two loads at $2.10.

Nonfat dry milk was up $.0075 at $.855. Three loads were sold, one at $.855 and two at $.8575. The last unfilled bid was on three loads at $.8525. The last uncovered offer was for one load at $.8675.

The USDA says milk production across the U.S. is rising along seasonal lines. Spot milk is going to cheese plants at $1.50 to $5 below Class in the Midwest and the USDA regional production shows “no signs” of slowing down over the near term. Butter production is active thanks to the readily available supply of cream. Midwestern demand is mixed with some manufacturers reporting continued heavy demand and others reporting a post spring holiday decline in orders. Cheese production is also running at high levels and some manufacturers are at seven day work weeks. Demand in the Midwest from food service and retail is steady. At the retail level, conventional ads dropped 22%, but organic ads jumped 50%, including a 70% decrease for conventional butter and 90% increase for organic butter. The spread between organic and conventional half gallons of milk is $1.52, in favor of organic. Over the past week, conventional milk ads were up 96% and organic was 95% higher.