Market News

Dairy markets slip further

Cheddar blocks, Class III futures and the Global Dairy Trade Index were all lower on Tuesday. Blocks were down a nickel on the Chicago Mercantile Exchange on a couple of sales.  Barrels gained a penny.  Class III futures slipped further with the February contract joining December and January under the $15 mark.  However, the June contract was at $15.99 and July-through-December 2016 range from $16.37 to $16.60.

A third consecutive decline at the Global Dairy Trade auction on Tuesday. The overall index was down 7.9 percent from the November 3rd sale.  The index has lost 145 points since October 6th.

Butter milk powder was 1 percent lower; lactose decreased 2 percent from the last auction; rennet casein lost 4.4 percent, cheddar cheese fell 5 percent, anhydrous milk fat was 5.9 percent lower, skim milk powder declined 8.1 percent and whole milk powder dropped 11 percent.  There was one increase from the last sale, butter was up 5.6 percent.

Volume was 30,044 metric tons, the smallest amount offered since the June 16^th sale.

The monthly Livestock, Dairy and Poultry Outlook from USDA on Tuesday predicts fewer milk cows and less milk per cow in the final three months of 2015. The Outlook Board also projects lower dairy exports and imports in the quarter.  Those estimates along with domestic supply and demand projections prompted the Board to lower the cheese and nonfat dry milk price while raising the butter and whey price.  The Class III price for the fourth quarter was lowered but the Class IV price estimate was raised to more than cover it.  As a result, the all milk price for the fourth quarter was raised 50 cents and is now estimated at between $17.50 and $17.80.