Market News

Milk futures higher, cash dairy mixed

In Class III trade at the Chicago Mercantile Exchange, milk futures were up modestly, relative to the recent losses, on end of the week and end of the month short covering. October was $.07 higher at $15.21, November was up $.11 at $15.63, December was $.07 higher at $15.50, and January was up $.07 at $15.38.

Cash cheese blocks were unchanged at $1.5325. Barrels were up $.035 at $1.51. There were three loads sold, two at $1.485 and one at $1.51.

Butter was down $.0175 at $1.8975. The last unfilled bid was on one load at $1.87. The last uncovered offer was for one load at $1.8975.

Nonfat dry milk was $.0175 lower at $.9275. There were three loads sold, one each at $.94, $.93, and $.9275. The last unfilled bid was on one load at $.92.

The USDA says U.S. butter production for the week ending September 30th was active across the nation with an increase in available cream supplies. A number of processors are running at or near full capacity. That’s especially true for print butter as processors meet current needs and get ready for fourth quarter demand. There’s plenty of butter available right now as reflected in the recent cold storage report.

Cheese production was steady on the week for most of the U.S., active in the Western region. Cheese production in the West and Midwest is near full capacity with strong retail and food service demand. The USDA says Midwestern cheese makers are having a more difficult time finding surplus milk this week than they did last week.

Fluid milk production on the farm in the Midwest was up over the past week and butterfat and protein components are improving in some areas. Across the U.S., manufacturing milk volumes are meeting current processing needs. Retail and food service bottled milk demand is mixed. Demand for nonfat dry milk processing is strong and cream is more available with a seasonal slowdown in ice cream production. Demand for cream from sour cream and cream cheese makers is rising.

The spread between organic and conventional half gallons of milk is $.24 with the USDA reporting a low volume of conventional ads versus organic ads.