News

October base milk prices

Base milk prices for October production: Class II base is $20.56 per hundredweight, up 78 cents from September and $2.12 above October of 2012. The Class III base price for October milk is $18.22 up 8 cents from September but $2.80 below a year ago. The Class III price jumped $1.98 last October as drought-induced feed shortages were starting to impact the market, that would be the highest Class III price of 2012. The Class IV base price for October, 2013 is $20.17 up 74 cents from September and $1.63 higher than a year ago.

Component pricing per pound: butterfat $1.6638; protein $3.4107; nonfat solids $1.6521; other solids $0.3852.

National Dairy Products Sales Report for the week ending October 26: cheddar cheese blocks averaged $1.80 per pound up 0.9 cents from the previous week, barrels gained 3.1 cents to average $1.80, and butter declined 4.4 cents for the week to average $1.52 per pound. Nonfat dry milk increased 0.3 cents to average $1.85 and dry whey decreased 1.1 cents to average 56 cents per pound.

Dairy Market News says while milk availability is “less than desirable”, milk supply declines have started to turn-around. Increasing components are pushing yields higher. Cheese makers say orders remain strong ahead of the holiday season and inventories are being worked down. Export interest remains strong as well. Cheese production is limited in the West by competition for milk from the Class IV market.