Market News

Milk futures, cash dairy mixed

In Class III trade at the Chicago Mercantile Exchange, milk futures were mixed, consolidating after the recent mostly lower trend. October was down $.05 at $14.99, November was $.01 lower at $15.47, December was $.03 higher at $15.44 and January was up $.01 at $15.40.

In the spot market, cash cheese was higher. Blocks were up $.0175 at $1.55. There was one unfilled bid at that price. Barrels were $.03 higher at $1.51. There were a total of eleven loads sold. The last unfilled bid was on one load at $1.48.

Butter was up $.02 at $1.85. The last unfilled bid was on two loads at $1.85. The last uncovered offer was for six loads at $1.90.

Nonfat dry milk was $.01 lower at $.915. The last unfilled bid was on one load at $.90. The last uncovered offer was for one load at $.915.

The USDA says butter churning across the U.S. is at seasonal levels with many getting ready for fourth quarter needs. There are reports of some producers in the Central region being limited by operational issues. Lower cash prices have reportedly stimulated consumer demand. Midwestern cheese production is called active and near fully capacity, but a few plants are down for maintenance and repairs. Fluid milk production is close to the seasonal lows. Production in states along the northern tier are generally steady with the previous week. Bottled mixed demand is mixed as schools get closer to fall break. Conventional dairy ads were up 14% on the week and organic ads were 17% higher. The premium for organic butter over conventional is $1.79 per pound and the premium for an organic half gallon of milk over conventional is $2.62.