Milk futures, cash dairy mixed
Class III milk futures at the Chicago Mercantile Exchange were mostly lower on spread trade and follow through selling. July was down $.04 at $15.59, August was up $.05 at $16.55, September was $.03 higher at $16.94, and October was $.02 lower at $17.09.
Cash cheese blocks were up $.02 at $1.65. Four loads were sold, including three at $1.65 and one at $1.6425. The last unfilled bid was on one load at $1.645. The last uncovered offer was for one load at $1.665. Barrels were $.0125 higher at $1.45. One load was sold at $1.45. The last uncovered offer was for three loads, all at $1.45.
Butter was unchanged at $2.585. A total of 16 loads were sold, including three at $2.585. The last unfilled bid was on one load at $2.5825. The last uncovered offer was for four loads at $2.60.
Nonfat dry milk was $.0025 lower at $.8675. Eight loads were sold, including six at $.8675. The last unfilled bid was on two loads at $.86. The last uncovered offer was for one load at $.90.
The USDA has lowered its 2017 U.S. milk production outlook to 216.3 billion pounds, because of slower than expected growth in the per cow production average. The 2017 all milk price was lowered, the current range is $17.65 to $17.95 per hundred weight, with Class III down on projected lower cheese prices and Class IV up on anticipated strong butter demand, which is expected to support cash butter prices. Class III milk prices are seen at $15.85 to $16.15 and Class IV is expected to be between $15.65 to $16.05. Cheese prices currently range from $1.575 to $1.605 per pound and butter is estimated at $2.365 to $2.425. Nonfat dry milk is pegged at $.90 to $.93, $.005 tighter on each end, and dry whey is placed at $.475 to $.495, down $.015.
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