Market News

Butter rebounds

No activity in the cash cheese market on the Chicago Mercantile Exchange on Friday. The lack of activity allowed Class III futures to drift lower. Butter increased another 3.75 cents and nonfat dry milk slipped a half-cent.

For the week, cash cheese barrels down 2 cents, blocks are 5.75 cents lower, butter increased 7.5 cents and nonfat dry milk is unchanged. Class III futures for August lost 4 cents. September slipped a dime, October dropped 12 cents and February fell 17 cents from a week ago.

Dairy Market News says cream supplies remain tight and churning has slowed as butter makers are finding it more profitable to sell the cream. Food service and retail business remains strong and some are starting to plan their holiday purchases. Seems the $2.00 threshold has not scared anyone off.

Cheese is pretty-well in balance. Milk production is strong but decreasing as are components with the warmer weather. Demand remains strong and barrels closed above blocks this week.