Market News

Milk futures, cash dairy mixed

Class III milk futures at the Chicago Mercantile Exchange were mixed on spread trade and profit taking. June was unchanged at $16.31, July was down $.06 at $16.61, August was steady at $17.27, and September was $.01 lower at $17.56.

Cash cheese blocks were unchanged at $1.63. Barrels were $.0125 at $1.4025. Eight loads were sold, including one at $1.4025. The last uncovered offer was for one load at $1.41.

Butter jumped $.12 higher at $2.70. Eight loads were sold, including four at $2.70. The last unfilled bid was on two loads at $2.64. The last uncovered offer was for two loads at $2.72.

Nonfat dry milk was $.0075 higher at $.9075. Six loads were sold, including one at $.9075. The last unfilled bid was on one load, also at $.9075. The last uncovered offer was for one load at $.92.

The USDA says cash butter for the week ending June 10th averaged $2.39 per pound, up $.067 on the week. 40 pound blocks of cheddar were pegged at $1.72, $.04 higher. 500 pound barrels averaged $1.55, up $.012. Dry whey came out at $.500, down $.001. Nonfat dry milk averaged $.923, $.026 higher.

The USDA’s attaché in Japan says Tokyo intends to buy up to 21,000 tons of nonfat dry milk through March 2018, in addition to purchases of 13,000 tons announced in late January. The attaché says the move is because of higher demand for drinking milk, reduced production in the prefecture of Hokkaido, “sufficient” butter stocks, and steady yogurt consumption. So far this year, the U.S. and Australia are the third largest suppliers of Japan’s nonfat dry milk, each currently holding 14% of the market share, after Belgium at 33% and New Zealand at 28%.

According to HighGround Dairy, milk production in the United Kingdom for the week ending June 3rd was down 1.2% on the year and production in France for the week ending June 4th was 2.6% lower.