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Milk futures higher, cash dairy mixed

In Class III trade at the Chicago Mercantile Exchange, milk futures were higher on short covering, spread trade, and technical buying. January was up $.05 at $16.62, February was $.29 higher at $16.99, March was up $.17 at $17.09, and April was $.11 higher at $17.18.

Cash cheese blocks were up $.0125 at $1.67. There were four loads sold, including one at $1.67. The last uncovered offer was for one load at $1.67. Barrels were down $.02 at $1.575. The last uncovered offer was for one load at $1.575.

Butter was $.04 lower at $2.22. There were six loads sold, including one at $2.22 and two at $2.255. The last unfilled bid was on one load at $2.19. The last uncovered offer was for one load at $2.24.

Nonfat dry milk was $.0225 higher at $1.0525, the highest close in more than a year. There was one load sold at $1.05. The last unfilled bid was on one load at $1.0525.

The USDA reports butter production remains active across the country, primarily bulk butter headed to cold storage, but some are still doing print butter ahead of the Super Bowl. Cream is more available, but some plants don’t have the space for extra loads.

Cheese production is active in the Midwest and nationally, there’s plenty of cheese available. Some of those stocks will be drawn down by Super Bowl demand.

The USDA says fluid milk production is returning to the typical seasonal levels after the holidays. Most manufacturers have milk needs met. Midwestern spot prices are $2 to $4 below the Class III price.

At the retail level, conventional ads were up 15% on the week and organic ads jumped 177%. Conventional butter ads were down 34%, while organic was up sharply. The price spread between organic and conventional half gallons of milk is $2.63, in favor of organic.

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