Market News

A flat week in the dairy markets

Cash cheese slipped a little, butter and nonfat dry milk gained a little and Class III futures dropped on the Chicago Mercantile Exchange on Friday.  It was a very busy week in the markets with 30 loads of barrels and 20 loads of blocks sold.

For the week, cash cheese barrels lost 3.5 cents, blocks fell 5 cents, butter ended-up unchanged and nonfat dry milk lost 4.5 cents.  Class III futures for June slipped a nickel, July lost 18 cents, August and December are down a penny each.

Cream supplies are tight in the Central and Northeastern United States; that has spot butter prices 5 to 7 cents over market.  Some of that butter is going into inventory, the May Cold Storage Report showing a 26 percent increase in butter stocks compared to a year ago.

Dairy Market News says cheese production remains strong but change is in the air.  Less surplus milk is available as warmer temperatures are setting in especially in the Southeast and Pacific Northwest pushing milk production down.

One of the largest dairy cooperatives in the United Kingdom is reducing its farm pay price another pence-per-liter on July 1.  First Milk recently reported a loss of 22 million Pounds Sterling ($34.6 million) in 2014-15.  Last January the co-op had to delay payments to farmers for two weeks citing cash-flow problems.  As part of a turnaround plan, First Milk chairman Sir Jim Paice is stepping-down.  An ongoing retail price war among the four major supermarket chains in the U.K. has pushed farm milk prices below the cost of production for many farmers.

Russia has extended its ban on dairy imports from the US, the EU, Australia, Canada and Norway for another year.