Continued strength in dairy
Cheese demand just keeps going-and-going; barrels gained another 4.5 cents on the Chicago Mercantile Exchange on Wednesday, blocks were up 4 cents. Dairy Market News says usually when prices increase quickly, buyers pull back but that is not the case this time around. Manufacturers are producing a lot of cheese and retail and food service people are buying it. Northeaster cheese plants are running 6 to 7 days a week. Given the declining price for nonfat dry milk, some are using it to extend cheese yields in the vats.
National Dairy Products Sales Report for the week ending August 16: cheddar cheese blocks increased 2.4 cents to average $2.04 per pound. Barrels increased 7.3 cents to $2.12, butter decreased 5.3 cents to $2.41, nonfat dry milk is 2 cents lower at $1.81 and dry whey slipped 0.9 cents to average 68.8 cents per pound.
The Base Class I Price for September milk is $23.63 per hundredweight, down 24 cents from August. The Base Skim Milk Price for Class I is 66 cents lower at $14.56. That is the lowest Base Skim price since October of last year.
Cooperatives Working Together (CWT) has accepted 6 requests for export assistance from Dairy Farmers of America and Northwest Dairy Association (Darigold) to sell 1.964 million pounds of Cheddar and Gouda cheese, to customers in Asia, Europe and the Middle East. The product will be delivered August 2014 through January 2015.
Year-to-date, CWT has assisted member cooperatives in selling 82.543 million pounds of cheese, 48.051 million pounds of butter and 19.877 million pounds of whole milk powder to 43 countries on six continents.
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