Market News

Milk futures, cash cheese higher

In Class III trade at the Chicago Mercantile Exchange, milk futures were supported by follow through buying, but several months did run into overhead technical resistance. November was up $.02 at $16.75, December was $.23 higher at $16.94, January was up $.20 at $16.33, and February was $.16 higher at $16.24.

Cash cheese was higher. Blocks were up $.0125 at $1.91. There were two loads sold at $1.9025. The last unfilled bid was on one load at $1.91. Barrels were $.0825 higher at $1.75. There were a total of 21 loads sold, ranging from $1.67 to $1.75.

Butter held at $2.03. The last unfilled bid was on one load at $2.03.

Nonfat dry milk was unchanged at $.90. There were five loads sold, including one at $.90. The last unfilled bid was on one load, also at $.90.

For the week ending November 18th, the USDA says butter production in the Central region declined over the past week because of light to moderate cream availability. Some processors are shifting to microfixing bulk butter to bolster print supplies. Cream availability is better in the East and West regions. Across the U.S., butter demand is strong and most Thanksgiving orders for retails are in the late stages of manufacturing and delivery.

Cheese production is active in all regions with many cheese makers trying to keep up with retail demand. Some Midwestern manufacturers report holiday supplies are rising with at least a few processors expected to work through Thanksgiving week.

Fluid milk production is higher in the Central region. Supplies are uneven in parts of the region, but the USDA says other areas are pushing organic milk into the conventional market. Bottled milk demand is mixed. Demand for condensed skim from Class II and III processors is strong.

At the retail level, total conventional dairy ads were up 2% on the week, while organic ads were down 39%. The spread between organic and conventional half gallons of milk was $1.60, with a premium for organic.