News

A good week for dairy markets

Dairy prices nudged higher again on Friday on the Chicago Mercantile Exchange. For the week, cash cheese barrels gained 2 cents. Blocks up 1.75 cents, butter unchanged, Grade A nonfat dry milk is 4 cents higher while Extra Grade increased 3 cents. November, December and January Class III futures increased an average 15 cents per hundredweight.

Overall, cheese production is strong across the United States, demand is good enough that plants are looking for extra milk but supplies are limited and spot prices have premiums up to $3.00 and for some that is just too high. Some plants are using nonfat dry milk or cream to extend the cheese vats. Dairy Market News says seasonal demand for cheese is good as retailers are starting to build up for the holidays and export interest is strong. On top of that, Class II manufacturers are looking for more milk as well. Class I demand is good; Florida imported 178 loads this week.

California dairy producers are disappointed with an announcement from their Department of Food and Agriculture that the temporary 12.5-cent adjustment in the milk price due to expire at the end of the year has been extended through next June. Producers had been hoping for a permanent change to the pricing formula and something around 46 cents.