News

Dairy markets mixed

Cash cheese moved higher on the Chicago Mercantile Exchange on Monday although Class III futures declined a bit in response to the grain markets. Cash cheese barrels increased 1.75 cents to $1.845 per pound and blocks added 1.25 cents to close at $1.885.

Dairy Market News reports Class I demand is strong in the Eastern United States to the point it has reduced the milk supply for manufacturing so cheese makers are pulling in milk from the Central States. Meanwhile Florida milk production is reaching seasonal lows so 96 loads went into the Sunshine State last week. The rest of the Southeast brought in 47 loads. Milk supplies are tightening up in California as well with processors finding it difficult to fill their needs. Heat and heavy rains are pressuring production in the Southwest as well. Production is good in the Pacific Northwest but even there processors are not running at full capacity.

Milk production in Western Europe is edging lower with processors saying stocks are not at desired levels. A lot of Europeans are watching to see just what affect the drought in the United States has on the dairy industry. Production is also declining in Eastern Europe but overall they are in better shape than the west.

The new production year is just starting to gain steam in Oceania.