Market News

Milk futures higher, cash dairy mixed

In Class III trade at the Chicago Mercantile Exchange, milk futures were supported by technical buying and expectations for good manufacturing demand. December was up $.02 at $16.94, January was $.09 higher at $16.52, February was up $.18 at $16.52, and March was $.17 higher at $16.48.

Cash cheese was lower. Blocks were down $.02 at $1.76. There was one load sold at $1.76, along with three loads sold at $1.7525. The last unfilled bid was on one load at $1.76. Barrels were down $.02 at $1.635. There were a total of six trades, three at $1.645. The last uncovered offer was for one load at $1.635.

Butter was $.13 higher at $2.23. There were a total of six trades reported, ranging from $2.10 to $2.23. The last unfilled bid was on one load at $2.20. The last uncovered offer was for one load at $2.25.

Nonfat dry milk was up $.0375 at $.9575. There were two loads sold, one at $.92 and one at $.95. The last unfilled bid was on one load at $.9575.

The USDA says butter for the week ending November 26th averaged $2.00 per pound, up $.055 from the previous week. 40 pound blocks of cheddar were pegged at $1.90, $.076 higher. 500 pound barrels averaged $1.79, up $.011. Dry whey came out at $.377, $.003 higher. Nonfat dry milk averaged $.918, up a half a penny.

California’s Department of Food and Agriculture says nonfat dry milk for the week ending November 25th averaged $.9108 per pound, down $.0163 on the week, with sales of 5,646,530 pounds, a drop of 1,729,938, the lowest level since late October.

U.S. milk prices improved in November. U.S. milk production is running ahead of last year’s pace, but domestic pre-holiday demand for cheese and butter is good and some export competitors have reduced production levels in response to lower global prices earlier in the year and declining demand from China. The USDA says the price of Class II milk, used in perishable manufactured products, was $14.60 per hundredweight, up $.51 from September. For Class III, used to make cheese, the price of $16.76 was $1.94 higher. Class IV milk, used to make butter and dried products, was pegged at $13.76, up $.10.