Market News

Milk futures higher, cash dairy mixed

Class III futures at the Chicago Mercantile Exchange were supported by follow through buying. May was up $.10 at $15.58, June was $.18 higher at $15.87, July was up $.12 at $16.33, and August was $.12 higher at $16.76.

Cash cheese blocks were $.11 higher at $1.60. Four loads were sold, including one at $1.60. Barrels were up $.03 at $1.45. A total of 24 loads were sold, including 13 at $1.45. The last unfilled bid was for 10 loads at $1.44. The last uncovered offer was on two loads at $1.46.

Butter was $.0125 lower at $2.1075. 14 loads were sold, including two at $2.1075. The last unfilled bid was on four loads at $2.105. The last uncovered offer was for one load at $2.11.

Nonfat dry milk was down $.005 at $.845. Seven loads were sold, including three at $.845 and three at $.85. The last unfilled bid was on one load at $.845. The last uncovered offer was for one load at $.87.

The USDA says U.S. milk production over the past week was mixed with the Central U.S. at flush levels. Bottling demand was mixed with Midwestern sales steady. Class III prices are $3 to $6 under Class and some Midwestern cheese plants that were previously unable to take spot milk are now taking spot milk. Some Midwestern cheesemakers say good demand is helping to keep supplies in check. Cream supplies are readily available, but some butter processors are slowing down production, while others are keeping it at high levels. The USDA says butter inventories are steady to higher, along seasonal lines. At the retail level, conventional dairy ads were up 51%, while organic ads were down 21%. The current price spread between organic and conventional half gallons of milk is $1.38, in favor of organic.