Market News

Milk futures higher, cash dairy mixed

Class III milk futures at the Chicago Mercantile Exchange were supported by a new round of commercial buying. November was up $.18 at $16.13, December was $.12 higher at $15.75, January was up $.17 at $15.50, and February was $.13 higher at $15.40.

Cash cheese blocks were unchanged at $1.7125. Barrels were $.0025 higher at $1.7125. The last unfilled bid was on one load at $1.7025.

Butter was up $.015 at $2.27. Six loads were sold, including three at $2.27, along with two at $2.2675 and one at $2.2725. The last unfilled bid was on two loads, both at $2.27. The last uncovered offer was for two loads at $2.275.

Nonfat dry milk was $.0025 lower at $.745. Six loads were sold, three each at $.745 and $.74. The last unfilled bid was on one load at $.735. The last uncovered offer was for one load at $.7475.

The USDA reports cash butter for the week ending October 21st averaged $2.37 per pound, up $.02 on the week. 40 pound blocks were pegged at $1.75, $.06 higher. 500 pound barrels averaged $1.74, an increase of $.03. Dry whey came out at $.389, up $.021. Nonfat averaged $.797, down $.031.

HighGround Dairy says milk production in the United Kingdom for the week ending October 14th was up 3.9% on the year, while production in France for the week ending October 15th was 4.5% higher and production in Germany for the week ending October 22nd was up 3.4%.

The USDA’s attaché in Australia estimates 2018 fluid milk production at 9.3 million tons, which would be up 2.2% from the office’s current 2017 projections. The USDA cites expected improvements in weather, pasture growth, a bigger herd, and higher farm gate prices for the anticipated increase in production.