Market News

Milk futures, cash dairy higher

Class III milk futures at the Chicago Mercantile Exchange were supported by commercial and technical buying. October was $.20 higher at $16.63, November was up $.21 at $16.49, December was $.19 higher at $16.30, and January was up $.13 at $15.90.

Cash cheese blocks were $.025 higher at $1.75. The last unfilled bid was on two loads at $1.75. Barrels were up $.04 at $1.73. Four loads were sold, including one at $1.73. The last unfilled bid was on one load at $1.735.

Butter was $.025 higher at $2.355. 10 loads were sold, including one at $2.355. The last unfilled bid was on one load at $2.32. The last uncovered offer was for two loads at $2.36.

Nonfat dry milk was up $.0025 at $.8275. 11 loads were sold, including four loads at $.8275. The last unfilled bid was on one load at $.825. The last uncovered offer was for one load at $.83.

For September 2017, the USDA says the Class II milk price was $16.80 per hundredweight, down $.76 from August, the Class III price was $16.36, $.21 lower, and Class IV was $15.86, a decrease of $.75.

The USDA reports cash butter for the week ending September 30th averaged $2.48 per pound, up $.02 on the week. 40 pound blocks of cheddar came out at $1.64, down $.01. 500 pound barrels averaged $1.57, $.02 lower. Dry whey was pegged at $.401, down $.009. Nonfat dry milk averaged $.835, $.003 lower.

According to HighGround Dairy, milk production in Germany for the week ending October 1st was up 2.8% on the year, while production in the United Kingdom for the week ending September 23rd was 1.8% higher and production in France for the week ending September 24th increased by 2.8%. For August, production in the Netherlands was 1.7% lower than August 2016, but production in Ireland jumped 11.2%. HighGround adds the end of public intervention by the European Union has led to an all time low for EU skim milk prices.