Market News

Milk futures, cash dairy lower

Class III milk futures at the Chicago Mercantile Exchange were pressured by demand uncertainties and follow through selling. October was down $.05 at $16.24, November was $.12 lower at $16.16, December was down $.07 at $16.04, and January was $.10 lower at $15.72.

Cash cheese blocks were $.005 lower at $1.735. One load was sold at $1.74. The last uncovered offer was for one load at $1.735. Barrels were down $.0375 at $1.6925. 23 loads were sold, including two at $1.6925. The last uncovered offer was for one load at $1.74.

Butter was $.07 lower at $2.315. Three loads were sold, two at $2.315 and one at $2.3075. The last unfilled bid was on one load at $2.29. The last uncovered offer was for one load at $2.3275.

Nonfat dry milk was down $.0025 at $.8275. Three loads were sold, including one at $.8275. The last unfilled bid was on one load at $.82.

The USDA reports milk production in the Midwest declined over the past week, adding milk for processing plants is becoming harder to find. Cream supplies in the Midwest are balanced to available. Butter production ranges from active to stopped, but domestic demand is strong. Spot sales are moderate and there are some new export orders, with U.S. butter seen as competitively priced. Milk availability for cheese production is mixed, with some U.S. producers reporting few spot offers and others reporting an adequate supply, with prices generally steady to $1 above Class. Midwestern cheese production is steady to higher, with pizza cheese manufacturers expected to increase hours to meet demand. Export interest is reportedly improving. At the retail level, conventional dairy ads were up 31%, but organic ads were down 2%. The spread for organic and conventional half gallons of milk is $2.33, in favor of organic.