Market News

Milk futures, cash dairy mixed

Class III milk futures at the Chicago Mercantile Exchange were mixed, consolidating after the recent mostly sharply lower activity. March was down $.09 at $15.94, April was $.04 lower at $15.92, May held at $16.04, and June was up $.08 at $16.33.

Cash cheese blocks were $.01 higher at $1.48. There was one load sold at $1.48. Barrels were $.0275 lower at $1.4375. There were three loads sold, one at $1.4375, one at $1.44, and one at $1.45. The last uncovered offer was for one load at $1.45.

Butter held at $2.1625. The last unfilled bid was on one load at $2.1625. The last uncovered offer was for one load at t$2.19.

Nonfat dry milk was up $.0075 at $.805. There were two loads sold at $.805. The last unfilled bid was on one load at $.79. The last uncovered offer was for five loads at $.85.

The USDA says milk production over the past week was higher, along seasonal lines. Good weather and solid feed supplies in the Midwest have contributed to high fat and protein components. Class III interest in the Midwest is increasing from manufacturers and spot lots are $1.50 to $2 below class. There’s plenty of cream across the U.S.

Cheese production is holding at high levels. Because of discounted milk prices and demand uncertainties, cheese makers are torn between taking advantage of those milk supplies and keeping stocks from growing too big, too fast. Demand is generally good.

Butter production was also active thanks to the available cream supply. A lot of producers are focusing on print butter ahead of the spring holidays and bulk production is still active. A significant amount of print and bulk butter is head to cold storage.

At the retail level, conventional ads were up 1% and organic ads jumped 34%. The spread between organic and conventional half gallons of milk is $1.77, in favor of organic.