Market News

Milk futures, cash dairy mostly lower

Class III milk futures at the Chicago Mercantile Exchange were mostly lower on follow through selling and demand uncertainties, along with the recent tone in the spot market. September was $.03 lower at $16.23, October was down $.14 at $15.77, November was $.07 lower at $15.65, December was down $.03 at $15.61.

Cash cheese blocks were $.005 lower at $1.61. Three loads were sold, including two at $1.61. The last unfilled bid was on three loads at $1.58. The last uncovered offer was for one load at $1.63. Barrels were down $.05 at $1.45. 10 loads were sold, including one at $1.45. The last unfilled bid was on one load at $1.44. The last uncovered offer was for one load at $1.52.

Butter was $.03 higher at $2.4475. Four loads were sold, including two at $2.4475. The last unfilled bid was on one load at $2.445. The last uncovered offer was for one load at $2.45.

Nonfat dry milk was $.005 lower at $.8225. Two loads were sold, including one at $.8225. The last unfilled bid was on one load at $.82. The last uncovered offer was for one load at $.8375.

The USDA reports milk production was steady to lower in much of the U.S., but still enough to meet processing demands. Milk supplies in the Midwest have tightened, with production slowed in the southeast by Irma and Texas bottlers refilling their pipeline post-Harvey. Midwestern cream supplies are readily available. Spot butter trade’s softened because of a lack of new trading interest, but the USDA says a number of producers say contracted sales are active and some buyers have an eye on the first quarter of 2018. Other buyers are waiting to see if prices fall further. Production is mixed, from active to shut down for maintenance. Inventories are also mixed. Midwestern cheese makers says milk supplies are balanced to tight, depending on how much is headed to Texas, the Southeast, or schools. Cheese production in the Midwest is mixed, slower for cheddar, but very active for pizza cheeses. At the retail level, conventional dairy ads were up 12%, but organic ads were down 26%. The spread between half gallons of organic and conventional milk is $1.32, in favor of organic.