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Milk futures mixed, cash cheese lower

In Class III trade at the Chicago Mercantile Exchange, milk futures were mixed, consolidating after an up and down week. January was down $.03 at $16.77, February was $.04 lower at $16.96, March was down $.01 at $17.40, and April was up $.06 at $17.67.

Cash cheese blocks were down $.0225 at $1.6975. There were two loads sold at $1.6975. The last unfilled bid was on one load, also at $1.6975. The last uncovered offer was for one load at $1.70. Barrels were $.03 lower at $1.535. There were a total of seven loads sold, including two at $1.535 and two at $1.5275. The last unfilled bid was on one load at $1.53. The last uncovered offer was for one load at $1.55.

Butter was unchanged at $2.25. The last uncovered offer was for two loads at $2.26.

Nonfat dry milk held at $1.005. The last unfilled bid was on two loads at $1.00. The last uncovered offer was for one load at $1.015.

The USDA says moderate to heavy cream volumes kept butter production active over the past week, along seasonal lines. Part of that is print butter, to keep up with demand, but part of that is bulk butter, headed into storage. Spot prices have held up relatively well and retail and food service demand is called fair to good.

Cheese production in the West and Midwest was active and Super Bowl demand is starting to show up. The Midwest reports varied demand, while the West and Northeast are called active. Inventories for blocks and barrels in the Midwest are called long.

Fluid milk production is generally holding at seasonally high levels, despite weather in some areas disturbing production and distribution schedules. Class I sales are steady to good with most school needs filled. The fluid cream market is called weak.

At the retail level, conventional dairy ads were up 14% and organic ads were 3% higher. The current spread for organic and conventional half gallons of milk narrowed over the past week, with organic holding a premium to $0.93.

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