Market News

Milk futures lower, cash dairy mixed

In Class III trade at the Chicago Mercantile Exchange, milk futures were lower on profit taking and demand uncertainties, along with position squaring ahead of the USDA supply and demand numbers Monday. September was down $.07 at $16.51, October was $.11 lower at $16.70, November was down $.10 at $16.59, and December was $.05 lower at $16.20.

Over in the spot market, cash cheese was mixed. Blocks were up $.01 at $1.71. The last unfilled bid was on one load at that price. The last uncovered offer was for one load at $1.72. Barrels were down $.015 at $1.605. There were a total of five loads sold, including one at the closing price. The last unfilled bid was on one load at $1.59. The last uncovered offer was for one load at $1.61.

Butter was $.0025 lower at $2.0325. There were a total of three loads sold, one each at $2.0175, $2.0575, and $2.055. The last uncovered offer was for one load at $2.0325.

Nonfat dry milk was unchanged at $.905. There were a total of three trades, including two loads at the closing price. The last unfilled bid was on one load at $.90. The last uncovered offer was for four loads at $.91.

The USDA says that for the week ending September 9th, butter churning in the Central region was mixed with varied cream availability. Microfixing was called active. Butter inventories across the U.S. are mixed and many manufacturers are concentrating on current print orders because of strong export demand.

Cheese production has closed down in the Midwest with milk production down and some buyers reluctant to purchase spot supplies unless it’s for pre-committed sales or the milk is at a discount. Some manufacturers are using the downtime for maintenance and repairs. Cheese block availability in the Midwest is down. U.S. production is 2% ahead of last year’s pace.

Fluid milk production in the Midwest is mixed. The North Central part of the region has seen favorable conditions and while production is improving in the South Central, wet conditions have led to some quality concerns. Demand for cream from ice cream makers is declining.

At the retail level, ads for conventional and organic dairy products were mixed, depending on the product. The top advertised item of the week was conventional non-Greek yogurt in 4 to 6 ounce containers. The price spread for organic and conventional half gallons of milk was $2.77.