Market News

Milk futures lower, cash dairy mostly higher

Class III milk futures at the Chicago Mercantile Exchange were down on profit taking. July was down $.14 at $15.58, August was $.18 lower at $16.48, September was down $.12 at $16.76, and October was $.11 lower at $17.00.

Cash cheese blocks were $.0025 at $1.5525. Two loads were sold at $1.5525. The last unfilled bid was on one load at $1.55. The last uncovered offer was for one load at $1.5525. Barrels were up $.0075 at $1.375. Four loads were sold, all at $1.375. The last unfilled bid was on one load at $1.3725. The last uncovered offer was for three loads at $1.375.

Butter was $.0125 higher at $2.585. Four loads were sold, all $2.585. The last unfilled bid was on one load at $2.58. The last uncovered offer was for one load at $2.585.

Nonfat dry milk was up $.005 at $.8675. Six loads were sold, including two at $.8675 and two at $.87. The last unfilled bid was on three loads at $.8675. The last uncovered offer was for one load at $.875.

The USDA reports milk production over the past week in the Midwest was mostly steady and seasonal at post-flush levels. Bottling demand is down, but some of that could be made up by retail. USDA says some Midwestern cheese makers took spot loads at $1 to $3 below Class, while others opted out entirely. Cheese stocks are generally long, except for some specialty types, and demand for pizza cheese in the Midwest is meeting seasonal expectations. Print and retail butter demand are also meeting seasonal expectations. Cream multiplies are showing strength and at least in the Midwest, there was an increased availability with some plants closed for the holiday. That should be temporary, with active Class II purchases reported. USDA says butter production is active to light and inventories are growing ahead of seasonal demand expectations for later this year. At the retail level, conventional dairy ads were down 11%, but organic jumped 238%. The spread between organic and conventional half gallons of milk is $1.50, in favor of organic.