Market News

Milk futures, cash dairy mostly lower

Class III milk futures at the Chicago Mercantile Exchange were steady to lower on spread trade, demand concerns, and follow through selling. September was unchanged at $16.28, October was down $.14 at $16.02, November was $.14 lower at $15.81, December was down $.16 at $15.67.

Cash cheese blocks were $.0025 higher at $1.6425. Seven loads were sold, including one at $1.6425 and four at $1.64. The last unfilled bid was on five loads at $1.60. The last uncovered offer was for one load at $1.65. Barrels were $.01 lower at $1.54. A total of 26 loads were sold, including 11 at $1.5925 and two at $1.54. The last unfilled bid was on one load at $1.55. The last uncovered offer was for three loads at $1.61.

Butter was down $.0375 at $2.4575. 12 loads were sold, including three at $2.4575. The last unfilled bid was on one load at $2.4525. The last uncovered offer was for one load at $2.4575.

Nonfat dry milk was $.0175 lower at $.825. Six loads were sold, including two at $.825. The last unfilled bid was on one load at $.8175. The last uncovered offer was for one load at $.825.

The USDA reports milk production in the United States was steady to lower over the past week, depending on location. Production in the upper Midwest did hold steady. Spot Class III milk in the Midwest is $1.50 lower to $1 higher than Class with some cheese makers reportedly having a hard time filling spot needs, with school back in session, drawing down milk supplies. Cream in the Midwest is readily available. USDA says domestic butter demand is strong with active ordering from educational institutions. Retail demand is good, but trade is limited in some areas by price uncertainties. Butter production and inventories are mixed. At the retail level, the price spread for organic and conventional half gallons of milk is $1.44, in favor of organic.