News

Cash cheese blocks hit $2

A strong finish to the week in the dairy markets, barrels gained 2 cents on Friday to $1.95 while blocks added 1.5 cents to close at $2.00. Butter increased 2.25 cents and Class III futures jumped, January up 18 cents to $19.63, February increased 25 cents to $19 and March added 34 cents to close at $18.89.

For the week, cash cheese barrels up 12 cents, blocks up 7.5 cents, butter 1.5 cents higher, Grade A nonfat dry milk up 3 cents, Extra Grade up 4.5 cents. The January Class III contract gained $1.11, February up $1.04, March increased $1.14.

USDA Dairy Market News says last minute cheese orders for the holidays are completed but now they are buying for the football bowl and playoff games. Cheese production is being limited by tight milk supplies thanks to competition from the Class II and Class IV plants. Schools will be closing for the holidays so that will slow the Class I demand a bit.

Milk production is increasing slowly in the East, South and Midwest. California is increasing as well but at a slower-than-usual pace.