Archive for Dairy Markets

Fonterra raises milk solids farmgate price

The forecast payout to farmers for milk was now $7.00-$7.60 per kgMS for the 2019-2020 season.

Fonterra chairman John Monaghan said the co-op had continued to earn good prices for its milk.

Whole milk powder prices, which were a key driver of milk price, were at their highest level in three years.

The company’s first quarter earnings ending in October, before interest and tax, were up $233 million to $259m, from $26m the year earlier.

It said normalised earnings, which better reflected the underlying performance of the business, rose significantly to $171m, from $26m the year earlier, with a 14.5 percent improvement in gross margins.

The co-op had also cut costs by $104m and said it remains focused on reducing debt.

“This will require us to achieve a gross margin of $3 billion, further reduce operating expenditure, lower capital expenditure by $100m to $500m, and also divest some more assets,” Mr Monaghan said.

He said the increased milk price was putting pressure on costs, but it was maintaining its full year normalised earnings forecast at 15 to 25 cents a share.

“The higher price reflects a global dairy market that is tipped slightly in favour of demand.”

Mr Monaghan said New Zealand milk production was forecast to be up 0.5 percent on last year, with annual milk production in the other key global supply regions of the United States and Europe growing at less than 1 percent.

“On the demand side, global dairy trade prices have increased by about 6 percent since our previous forecast.

“Farmers will welcome what would be the fourth highest milk price in our history,” he said, adding it represented an $11.2b cash injection into the economy.

Source: rnz.co.nz

Milk Futures Climb Higher in Chicago Wednesday

On the Chicago Mercantile Exchange Milk futures were mostly up and cash dairy prices were mixed Wednesday.  Class III milk saw December gain a penny to $19.35, Jan fell a penny to $18.91. Class IV milk fell 4 in December to $16.80, January fell 14 to $17.06.

Dry whey was up $.0125 at $.3675 cents per pound. No sales were recorded. Forty-pound blocks were up $.0275 at $1.9750 per pound. Four sales were recorded from $1.9575 to $1.9750. Barrels were down $.0100 at $2.2525 per pound. No sales were recorded. Grade AA Butter was down $.0075 at $1.9350 per pound. One sale was recorded at that price. Nonfat dry milk was down $.0025 at $1.2475 per pound. No sales were recorded.

 

Slight drop of 0.5% after 5 consecutive rises at Global Dairy Trade

Global Dairy Trade price index goes down on Wednesday amid lower market demand for milk fats.

The GDT price index fell 0.5 percent from 3,481 U.S. dollars per tonne at the previous auction two weeks ago to 3,467 U.S. dollars per tonne, its first decline since early September.

A total of 36,258 tonnes of product was sold, down from 37,968 tonnes two weeks ago.

“The decrease was driven by lower demand for milk fats which offset strong prices continuing for milk powders,” NZX dairy analyst Robert Gibson said.

Whole milk powder increased just 0.1 percent to 3,331 U.S. dollars per tonne. It was the highest average price in three years, according to Gibson.

Rennet casein increase 4.9 percent to 8,047 U.S. dollars per tonne, and cheddar gained 2.7 percent to 3,797 U.S. dollars per tonne. Skim milk powder grew 1.9 percent to 3,068 U.S. dollars per tonne.

On the other hand, anhydrous milk fat decreased 5.1 percent to 4,840 U.S. dollars per tonne, while butter fell 4.9 percent to 3,983 U.S. dollars per tonne.

Global Dairy Trade Drives Milk Futures Lower in Chicago Tuesday

Tuesday’s Global Dairy Trade index fell half-a-percent, with the average price of dairy products settling at $3,467 a metric ton.  It’s the first overall decline since September 19th, with three of the last five trading sessions showing significant gains. On the Chicago Mercantile Exchange milk futures were down and cash dairy prices were mixed Tuesday.  Class III milk was softer. December gained 1 to $20.41, but Jan fell 2 to $19.34, and Feb fell 7 to $18.92 per cwt. Our first half average for 2020 sits at $18.17 per cwt. Class IV milk was unchanged in December at $16.65, but saw January fall 14 to $16.84, February fell 20 to $17.20 and the Class IV first half average for 2020 is at $17.43 per cwt.

Dry whey was unchanged at $.3550 cents per pound. No sales were recorded. Forty-pound blocks were up $.0150 at $1.9475 per pound. One sale was recorded at that price. Barrels were up $.0050 at $2.2625 per pound. Five sales were recorded from $2.2575 to $2.2625. Grade AA Butter was down $.0275 at $1.9475 per pound. Three sales were recorded from $1.9425 to $1.9450. Nonfat dry milk was down $.0125 at $1.25 per pound. One sale was recorded that price.

Dairy Markets Higher in Chicago Monday

On the Chicago Mercantile Exchange milk futures closed higher even with mixed cash trade Monday.  Class III futures markets were able to put together another round of higher trade, highlighted by the January and February months which were up 19 and 12 cents respectively. March through December 2020 ranged from 2 softer to 8 higher. The first half 2020 average closed at $17.90 per cwt. While the 2nd half of the year is offering $17.55 per cwt.  Class IV milk in contrast lost 10 cents in. December while January fell 11 cents, and February through June dropped 2-6 cents per cwt. The first half of 2020 for Class IV is offering $17.76 per cwt. 

Dry whey up $0.0025 at $0.3550. Blocks down $0.03 at $1.9325. Four trades were made ranging from $1.9175 to $1.96. Barrels up $0.01 at $2.5475. Four trades were made ranging from $2.2475 to $2.2575. Butter down $0.0275 at $1.97. Three trades were made ranging from $1.97 to $1.99. Nonfat dry milk up $0.0250 at $1.2625. One trade was made at that price.

Milk Price predicted to reach $20

After more than four years of disappointing milk prices, markets are delivering profitable prices to dairy producers.

While cheese markets have been on a roller-coaster ride for the last couple of months, they’ve been strong enough to support Class III milk prices above $18 per hundredweight.

Stocks of American-style cheese were down 4% year over year in September and production was down 3%. Cheese exports were up 12% year over year in September and are up 3% for the year through September, Bob Cropp, dairy economist with the University of Wisconsin, said in the latest Dairy Situation and Outlook podcast.

Cash price for blocks and barrels on the Chicago Mercantile Exchange this fall had gotten up to well over $2 a pound, with barrels as high as $2.39 a pound, he said.

On Nov. 21 the CME cash price was $2.18 for barrels and $1.84 for blocks.

“So they’re weakening, but they’ve been strong up to here,” he said.

“As a result, I think we’re looking at a pretty nice Class III price for November … over 20 bucks,” he said.

The USDA announced Class III price for October was $18.72, after starting the year at $13.96.

Milk prices for 2019 should end up about $2.20 per hundredweight higher on average than last year’s average, Cropp said.

There’s been some contraction in the CME futures price for December, but futures prices have been holding up OK, Mark Stephenson, fellow dairy economist at the university, said.

Futures prices for Class III milk were in the $16 for the first quarter of 2020. Now they’ve gone to the $17s, and Cropp thinks prices will be even stronger than what the futures market or USDA are forecasting, he said.

“I look for demand for cheese to stay pretty good, and I actually look for exports to do a little better,” he said.

And he’s not expecting any surges in milk production, globally or in the U.S.

Milk cow numbers in the U.S. in October were up 5,000 head from September but were still down 40,000 head from October 2018. Milk production per cow was up 1.7% year over year, leading to a 1.3% increase in milk.

University extension agents across the country are reporting forage quality at average to poor and forage supplies at average to short, which will likely affect production per cow, Stephenson said.

“I just do not see milk production coming on strong with finances stressing farmers for expansion, feed quality and production per cow, replacement numbers and farmers still exiting,” Cropp said.

He’s expecting Class III milk prices in the strong $17s in the first half of the year and into the $18s in the second half.

Stephenson’s forecast is in the same ballpark and maybe even a little higher by the end of next year, he said.

“Certainly this is a good year, and next year is likely to be somewhat better,” he said.

Barring anything that would affect demand, “things look a lot rosier for 2020” than the past 4-1/2 years, Cropp said.

Source: Capital Press

Dairy Markets in Chicago Close Higher Before Thanksgiving Break

On the Chicago Mercantile Exchange milk futures closed mostly higher Wednesday to round out the holiday-shortened week supported again by strong cash cheese trade. Class III futures contracts followed product higher gaining 23 cents in December, 14 in January and February foward ranged from 5 lower to 9 higher. Class IV markets added 1-6 cents on Wednesday. 

Dry whey unchanged at $0.3525. Blocks up $0.0325 at $1.9625. One trade was made $1.9775. Barrels up $0.0550 at $2.2475. Butter down $0.0125 at $1.9975. One trade was made at that price. Nonfat dry milk up $0.0075 at $1.2375. Nine trades were made on a range of $1.2250 to $1.24.

New Zealand milk price rises, volatility eases

Skim milk powder prices have reached a five-year high.

ASB bumped up its this season milk price forecast by 50c to $7.50/kgMS after last week’s 1.7% rise in the Global Dairy Trade.

And its senior rural economist Nathan Penny says most importantly the bank now believes we are likely to see less milk price volatility in the future.

“We believe that the fall in milk price volatility is structural in nature. In that sense, the farmgate milk price is moving to a higher plateau,” he said.

While BNZ has not moved yet from $7.10/kgMS, senior economic Doug Steel told Dairy News current market conditions suggest towards the top end of Fonterra’s $6.55 to $7.55/kgMS range. 

Westpac has more conservatively revised upwards for the current season to $7.10/kgMS. Westpac head of NZ strategy, Imre Speizer, says they are cautious about Chinese demand and allow for a modest pullback in world dairy prices over the first half of 2020.

Steel says last week’s GDT gain was slightly lower than expected but still the fifth consecutive price increase. 

“This takes the cumulative rise since early September through to 8.3%. Prices are now 26.4% higher than a year ago and heading towards the top of a range that has contained them since 2014.”

Milk powder prices drove the increase with skim milk powder (SMP) up 3.3% and whole milk powder (WMP) up 2.2% (average prices now US$3321/tonne). But fat prices eased with butter and AMF down 1.3% and 1.5% respectively. 

“Dairy market fundamentals still look healthy to us, with demand seemingly firm (unsatisfied bidders remain high, at 53) and supply is subdued (volumes sold at this event were 11.6% lower than a year ago),” he said.

Obvious offshore risks require monitoring. 

“On supply, latest data shows NZ October milk production was down 1.5% on a year ago. Admittedly last spring was strong but signs that NZ production is now not keeping pace with last year are supporting prices.”

Speizer, from Westpac, says WMP momentum remains clearly upwards, having risen a total of 12% since this sequence of auction price gains started in early July. It is up 28% from the low in November 2018.

Despite a slight pullback in participation, demand from China has remained solid so far this year, and has been almost the sole source of growth for New Zealand’s dairy exports, he says.

For the season to date, total New Zealand collections are just 0.5% above the 2018 equivalent. 

“This update is unsurprising, given spring has been cooler than average in many regions. October is the largest milk production month, closely followed by November and December, which means there’s little chance of domestic supply rising significantly in the near term given lagged weather impacts.

“Global supply remains constrained, with the US and EU flat over the past year. The implication from a supply perspective is that prices should remain firm.”

Meanwhile ASB’s Penny has a next season forecast range of $6.50 to $7.50/kgMS.

Northern Hemisphere growth is soft with annual production growth only marginally above flat in both the European Union and the US.

Source: ruralnewsgroup.co.nz

Milk Futures Continue Higher in Chicago Coming into Thanksgiving Holiday

On the Chicago Mercantile Exchange milk futures closed higher Tuesday supported by strong cash trade and positive export prospects. Markets will be closed Thursday and Friday for the holiday. Class III Milk’s turkey trot higher continued Tuesday. Driven by a positive move in cheese, December gained 28 cents to $19.09, January gained 30 to $18.66, and February gained 31 cents to $18.08. November gained one as we near the end of the month at $20.37 per cwt.  Class IV milk though unchanged in November at $16.65, December gained 7 to $17.10, and January gained 5 to $17.39 per cwt. 

Dry whey up $0.0025 at $0.3525. Blocks up $0.0475 at $1.93. Two trades were made at $1.93 to $1.9325. Barrels up $0.05 at $2.1925. One trade was made at that price. Butter unchanged at $2.01. Nonfat dry milk up $0.01 at $1.23. Six trades were made on a range of $1.22 to $1.23.

Grain markets showed some weakness, December corn fell 3 cents to $3.67 ½, January soybeans fell 8 ¼ to $8.84 ¼, and December soybean meal fell $3.60 to $294.70 per ton.

Milk Futures Start Thanksgiving Week Higher in Chicago

Milk futures on the Chicago Mercantile Exchange closed higher Monday while cash trade was spilt. Markets will be closed Thursday and Friday for the holiday. November Class III milk unchanged at $20.36. December a penny higher at $18.79. January six cents higher at $18.36. February up two cents at $17.77. March through June contracts unchanged to eight cents higher.  Class IV markets made modest gains as well adding 1-8 cents over the first half of its trade. The first half Class IV average is currently sitting at $17.74 per cwt. 

Dry whey up $0.0025 at $0.35. One sale was made at that price. Blocks up $0.04 at $1.8825. Four trades were made ranging from $1.8425 to $1.8825. Barrels down $0.0425 at $2.1425. Once trade was made at $2.11. Butter down $0.0150 at $2.01. Eight trades were made ranging from $2.01 to $2.0225. Nonfat dry milk unchanged at $1.22.

The grain complex experienced strength in the wheat market as Chicago jumped 15 cents, Kansas City was up 12 cents and Minneapolis added 6 cents. Corn followed along gaining 2 cents while soybeans fell 4 and a half cents. 

Milk Futures See Double Digit Gains in Chicago Thursday

On the Chicago Mercantile Exchange milk futures showed solid strength Thursday as cheese markets showed back up to work. Class III milk markets gained 3 cents in November and 27 cents in December 2019. First quarter 2020 traded 14-29 cents stronger while the second quarter ranged from even to 10 cents higher. Second half 2020 prices declined 1-4 cents per cwt.  Class IV markets watched December fall 4 cents, March declined 3 cents while June traded 5 cents higher. The USDA’s cold storage report will be released Friday. 

November Class III milk up three cents at $20.37.  December up 25 cents at $18.69.  January 23 cents higher at $18.19.  February up 24 cents at $17.69.  March through June contracts unchanged to 14 cents higher. Dry whey up $0.01 at $0.3550.  Three trades were made ranging from $0.35 to $0.3550. Blocks up $0.0050 at $1.8425.  Four trades were made ranging from $1.8225 to $1.83.  Barrels up $0.0350 at $2.1850.  Butter down $0.0075 at $2.04.  Three trades were made ranging from $2.04 to $2.0525.  Nonfat dry milk unchanged at $1.2250

Over in the grains, corn added 1 and three-quarter cents per bu., soybeans lost 4 cents and wheat dropped 4-6 cents per bu. Crude oil continued its higher run this week adding $1.30 on Thursday and closing at $58.39 per barrel.

Milk Futures Higher Midweek in Chicago

On the Chicago Mercantile Exchange Milk futures continued higher at midweek as strong global trade continues to carry markets.  Class III milk futures were mixed on Tuesday. November added 2 cents to $20.34 per cwt while December added 5 cents to $18.44 per cwt. First half 2020 traded even to 4 cents higher while second half prices closed even to 2 cents lower.  Class IV markets were slightly lower on Tuesday. First half 2020 fell 1-12 cents and closed with an overage of $17.70 per cwt.

Dry whey up $0.0125 at $0.3450. One trade was made at that price. Blocks unchanged at $1.8375. Barrels unchanged at $2.15. Butter down $0.0175 at $2.0475. Three trades were made ranging from $2.04 to $2.0575. Nonfat dry milk down $0.01 at $1.2250. One trade was made at that price

Grain prices felt weakness once again. Corn declined 3 and a quarter cent to $3.66 and three-quarters, soybeans dropped 6 and a half cents to $9.05 even and the wheat complex ranged from three and a half cents higher in Chicago to 3 cents lower in Minneapolis. 

 

Dairy margins widen to highest since 2017 in positive economic sign

In welcome news for the dairy economy, the September margin under the Dairy Margin Coverage program rose by $0.56 per cwt. over the August margin to reach $10.41 per cwt, the second consecutive month margins have fallen outside the threshold necessary to trigger a federal payment. The is the highest seen since the beginning of 2017, allowing for the change in the alfalfa hay price in the margin formula’s feed cost calculation. The September all-milk price was $0.40 per cwt. higher than August’s and the DMC calculated feed cost for September was $0.16 per cwt. lower than August’s, mostly due to a drop in the price of corn.

As of Nov. 6, USDA’s DMC Decision Tool currently projects DMC margin to remain above $9.50 per cwt. for the remainder of 2019 and during all of 2020. Milk prices are expected to generate most of the monthly changes in the margin forecast, while feed costs are anticipated to remain relatively stable during that time.

Source:ocj.com

Global dairy prices rise for fifth time in a row

Global dairy prices rose for the fifth time in a row at a fortnightly auction held early on Wednesday as constrained global supply provided support.

The GDT Price Index climbed 1.7%, with an average selling price of $3,481 per tonne, having risen 3.7% in the previous sale.

“It is strength in the milk powders that have driven the latest increase,” said Robert Gibson, analyst at NZX. “This is likely due to Northern Hemisphere production being at a seasonally low point in the year, and milk supplies continuing to wane from Southern Hemisphere countries, with New Zealand starting to ease back on the previous year’s supplies too.”

Prices for whole milk powder, the most widely traded item at the auction, rose 2.2% to its highest level in almost three years, while skim milk powder prices jumped 3.3%.

A total of 37,968 tonnes was sold at the latest auction, falling 1.8% from the previous one, the auction platform said on its website.

The auction results can affect the New Zealand dollar as the dairy sector generates more than 7% of the nation’s gross domestic product.

The kiwi currency was up 0.5% on Wednesday morning, trading around a two-week high of $0.6430.

GDT Events is owned by New Zealand’s Fonterra Co-operative Group Ltd, but operates independently from the dairy giant.

The New Zealand milk co-operative, which is owned by about 10,500 farmers, controls nearly a third of the world dairy trade.

U.S.-listed CRA International Inc is the trading manager for the twice-monthly Global Dairy Trade auction.

The next auction is scheduled for Dec. 3.

Source: reuters.com

Strong Global Trade Drives Milk Futures Higher in Chicago

On the Chicago Mercantile Exchange milk futures turned mostly higher Tuesday supported by strong global trade.  Global dairy event 248 this morning saw an overall gain of 1.7% from the last event 2 weeks prior. Cheese saw nice gains of 2.5% to a U.S. price equivalent of $1.68, butter continued to see values slide 1.3%, as did anhydrous milk fat, falling 1.5%. The remaining markets showed gains. Lactose up 1.3%, rennet casein up 5.6%, skim milk powder was up 3.3% and whole milk powder saw gains 2.2%. 

Class III milk saw November up 1 to $20.32, December fell 8 to $18.39, and Jan – March gained 5-11 to average at $17.52. Class IV saw gains of 13 cents in December and January to finish at $17.11 and $17.38 per cwt.

The U.S. CME spot market took a softer turn Tuesday. Dry whey unchanged at $0.3325. Blocks down $0.03 at $1.8375. Three trades were made at $1.8375 and $1.84. Barrels down $0.0050 at $2.15. One trade was made at that price. Butter down $0.01 at $2.0650. Three trades were made ranging from $2.05 to $2.0725. Nonfat dry milk up $0.0175 at $1.2350. Five trades were made ranging from $1.23 to $1.2350.

The milk production report was released by the USDA. U.S. Milk production grew 1.3% in October from the same month in 2018 to 18.1 billion lbs. They adjusted the cow herd report from September 7,000 head higher and showed an increase of 5,000 head of cattle from September to October. This is an expansion of the herd, yet we are still 40,000 cows lighter than last year.

Mixed Markets Monday in Chicago

On the Chicago Mercantile Exchange milk futures were mixed Monday following in the footsteps of the cash markets. Class III milk prices were mixed on Monday. November milk added 6 cents to $20.30 per cwt while 2020 prices ranged from a couple cents higher in March to double digit losses in the later parts of the year. At today’s close, first half 2020 average was offering producers $17.32 per cwt while the full year average resided at $17.40 per cwt. Class IV markets traded stronger to begin the week to the tune of 3-13 cents. Class IV first half average is offering producers $17.56 per cwt. 

The cheddar spot market was weak once again to kick off this week. Blocks down $0.0225 at $1.8675. Two trades were made at that price. Dry whey up $0.0125 at $0.3325. Five trades were made at $0.33 and $0.3325.  Barrels down $0.0425 at $2.1550. Two trades were made at that price. Butter up $0.0075 at $2.0750. Three trades were made at $2.0675 and $2.0750. Nonfat dry milk unchanged at $1.2175.

Grains turned in another round of weakness losing 3.5 cents in corn, 8 cent sin soybeans and wheat was up 4.5 cents in the Chicago market.

Milk Futures Mixed in Chicago Thursday

On the Chicago Mercantile Exchange milk futures were mixed Thursday as declines in cash markets caught up with traders.  Class III was more stable with a mixed reaction to the cheese trade. November finished unchanged at 20.19, December fell 9 to 18.70, and 2020 saw Jan – March trade 1-2 higher averaging at 17.35/cwt. Class IV was unchanged in November at 16.73, gained 5 in December to 16.98 and gained 2 in January to 17.19/cwt. The remainder of 2020 was unchanged. 

Dry whey up $0.0075 at $0.2975. Blocks down $0.01 at $1.90. Barrels down $0.0475 at $2.2325. One sale was made at that price. Butter up $0.0025 at $2.0675. Six trades were made on a range of $2.0625 to $2.0750. Nonfat dry milk unchanged at $1.2175.

Midweek Sees Milk Markets Higher in Chicago

On the Chicago Mercantile Exchange milk futures turned back higher at midweek despite the continued decline in cheese markets. Class III moved higher with a short-term rally during trading. November Class finished 15 higher to $20.19, December saw a 40-cent swing during trading to finish 10 higher at $18.79, and 2020 saw Jan – March trade 9-12 higher with an average price of $17.33 per cwt. Class IV was unchanged across the board, November at $16.73, December at $16.93, and January – March averaging at $17.30 per cwt. 

The CME spot trade was weaker with the exception of dry whey, Dry whey up $0.0075 at $0.29. Six sales were made at $0.2875 and $0.29. Blocks down $0.03 at $1.91. Four sales were made ranging from $1.8850 to $1.91. Barrels down $0.0350 at $2.38. Two trades were made at $2.27 and $2.28. Butter down $0.0025 at $2.0650. One trade was made at that price. Nonfat dry milk unchanged at $1.2175. Ten trades were made at that price.

Grain markets saw December corn fall 2 ¼ to $3.75 ¼, November soybeans fell 3 ¼ to $9.02 ½, and December soybean meal gained $1.80 to $304.10 per ton.

U.S. dairy exports rebound in September

Improved sales of NDM/SMP and cheese push overall volume above year-ago levels.

A surge in nonfat dry milk/skim milk powder (NDM/SMP) exports to Mexico and Southeast Asia, plus increased cheese shipments to Mexico and United Arab Emirates (UAE) propelled total U.S. dairy exports above year-ago levels for the first time since October 2018.

U.S. suppliers shipped 170,731 tons of milk powders, cheese, whey products, lactose and butterfat in September, up 2% from last year. The value of all exports was $508.8 million, up 17% and the most since May.

Chart2 (2)-3


Exports of NDM/SMP were 65,328 tons in September, a 16-month high. This figure was up 25% from a year ago. With EU intervention stocks mostly moved through the supply chain, buyers increasingly turned to the United States for powder. Exports to Southeast Asia (primarily Indonesia and Vietnam) were up 36% during the month, while sales to Mexico were up 14%. Shipments to Peru and Pakistan also were higher.

Chart3 (2)-4


Cheese exports also rebounded in September, despite U.S. benchmark prices that sat well-above world indicators. Volume totaled 27,433 tons, 12% higher than the prior year. Gains were led by a 31% increase in shipments to Mexico. In addition, volume to UAE nearly tripled and sales to South Korea were up 9%.

Chart1 (2)-5


Total whey exports were 36,468 tons in September, down 11% from last year. Whey sales to China, particularly dry whey, remain depressed due to retaliatory tariffs and African swine fever. Suppliers sold 8,438 tons of whey products to China, down 23% from last year. Dry whey sales were down 66%, while shipments of whey protein concentrate (WPC) were up 60%.

Whey sales to Canada (-37%) and Mexico (-18%) also were lower in September. In contrast, shipments to Southeast Asia were 2% higher.

Lactose exports were 28,989 tons, down 7% and the lowest in seven months. Volume to Southeast Asia was particularly light, off 39% from a year ago and a four-year low. Exports to China were down 41%, and Japan (-25%) was lower as well. This was partially offset by a 74% rise in shipments to Mexico.

Shipments of fluid milk/cream continued to post double-digit increases. September volume was up 10% from last year, led by a 36% jump in shipments to Canada and increased sales to Southeast Asia and Taiwan.

Among other products, exports of whole milk powder (-49%), butterfat (-42%) and milk protein concentrate (-14%) all lagged prior-year levels.

Overall, in addition to increased dairy exports to Mexico, Southeast Asia and the Middle East/North Africa (MENA) region, suppliers moved greater volumes to South America – primarily milk powder to Peru and Colombia.

On a total milk solids basis, U.S. exports were equivalent to 15.3% of U.S. milk solids production in September. In the first nine months of the year, exports accounted for 14.2% of production.

To use interactive charts with current and historical trade data, see usdec.org’s page on U.S. export data.

To download a printable PDF summary with charts showing September trade data in detail, click here.

Source: USEDC

Class III benchmark milk price hits five-year high

The October Federal order Class III benchmark milk price hit a five-year high this week at $18.72 per hundredweight, up 41 cents from September, $3.19 above October 2018, and the highest Class III since November 2014. It equates to about $1.61 per gallon, up from $1.57 in September and $1.34 a year ago.

It is $3.29 above what California’s October 2018 4b cheese milk price was. The nation’s largest milk producing state marks the one year anniversary of entering the Federal order Milk Marketing Order system on Nov. 1.

The 2019 Class III average stands at $16.37, up from $14.72 at this time a year ago and $16.18 in 2017.

The October Class IV milk price is $16.39, up 4 cents from September and $1.38 above a year ago. The 2019 average stands at $16.23, up from $14.06 a year ago and $15.44 in 2017.

Central cheesemakers continue to report steady, somewhat tight milk supplies, according to Dairy Market News. Spot milk markets were quiet early in the week, as prices continue to fall in the $1-over Class area. Cheese production is still slightly slower than this time in recent years. Producers report shifting production to current market needs, as more Cheddar is being produced regionally.

Cheese demand is good for short term needs. Barrel makers continue to report mostly bullish demand and some process cheese manufacturers say they are oversold week to week. Cheese market tones are “bullish,” says DMN, but cheesemakers are concerned about how bullish. They say $2+ cheese on the CME are “creating a short-term, or necessity-based, purchasing environment. Buyers are not looking for anything longer term currently.”

Looking westward, the CME barrel pricing topping the blocks is a surprise to many, according to DMN, and contacts credit a tightness of barrels compared to blocks. Increased governmental cheese purchases seem to be helping that trend. Demands for the holiday are surfacing “bit by bit,” says DMN, but domestic sales were close to the previous week’s levels. Export sales have improved slightly. Cheese inventories are sufficient, cheese output is active, prompted by stable to increasing milk availability throughout the West.

FC Stone reported in its Oct. 28 Early Morning Update that “Eurostat keeps revising up European Union butter production data. Each state submits data on their own schedule, so data drips in, along with revisions to historical data, but presently the data looks like EU butter stocks will be up 20% by year end.”

DMN says there was concern that cream availability for churning could dwindle as Class II and Class III producers took more cream for holiday-related manufacturing but butter makers say that was not the case this week. Bulk butter supplies are generally available and market tones are “maintaining a steadiness that market participants are accustomed to.” Some analysts expect to see a sub-$2 price point prior to seeing $2.25 again. Others expect continued steadiness, explaining that with Thanksgiving falling later, on November 28th this year, it will assist the market later into the season.

Chinese milk equivalent imports for September were very close to forecast, according to FC Stone, up 1.7% from last year, but they predicted: “The growth rate for October should pick up quite a bit (into the 5-10% range). Food-type imports are still doing pretty good, but feed-type items, especially lactose, are holding back total milk equivalent imports.”

“Milk equivalent imports aren’t growing like they were in 2013/2014. First quarter 2014 total milk equivalent imports were up 43% with feed up 14% and food-type products up 52% (on top of 25% growth in first quarter 2013, says FC Stone.

Cheese imports were down 58.7% from August and down 2.9% from September 2018. Butter imports were down 56.3% from August and 7.4% below a year ago. Combined whole milk and skim milk powder imports were down 25.4% from August but were up 25% from a year ago. Whey imports were off 9.7% from August and 12.6% below a year ago.

The Daily Dairy Report however, says the U.S.-China trade dispute likely has more to do with the smaller figure. The DDR stated; “The United States was China’s largest whey trading partner in September, accounting for 28% of whey imports, matching November 2018 as the lowest share since September 2007. European countries benefited from lower U.S. imports, with volumes increasing 76% over the previous year, suggesting that smaller year-over-year volumes from the United States are related more to the trade dispute than ASF.”

The November Asia-Pacific Economic Cooperation meeting in Chile, where President Trump and China’s Xi Jinping were to meet, was canceled due to unrest in Chile but HighGround Dairy’s Lucas Fuess reported in the Nov. 4 Dairy Radio Now broadcast that China reportedly invited Trump to meet in Macau, China instead.

Fuess says there is still hope that Phase 1 of the trade agreement between the U.S. and China can be implemented and that agricultural purchases, including dairy products, will be made by the Chinese. China has made several promises of increased ag purchases, primarily corn and soybeans, says Fuess, but HighGround hopes they will include dairy products.

“There is nothing yet in writing,” Fuess cautioned, and “China continues to hesitate to commit to exactly how many agricultural products they will purchase.” He adds there was a “good sign” in that President Trump has held off imposing additional tariffs on Chinese imports, as he had previously threated to do.

Fuess also reported on Japan’s September dairy imports, which included record levels of cheese due to Japan’s declining domestic dairy production. He said that a lot of Japan’s dairy imports are from the US however we continue to compete with Europe and New Zealand. “If the price is right and the U.S. can compete, we can ship product away from our shores and fulfill the needs of foreign countries and hopefully have a good impact on our U.S. domestic prices.”

Cooperatives Working Together member cooperatives accepted eight offers of export assistance this week to help capture sales contracts for 952,397 pounds of Cheddar and Gouda cheese and 224,872 pounds of cream cheese. The product is going to customers in Asia and Oceania and will be delivered from November through March 2020.

In politics, the National Milk Producers Federation announced its support for the Farm Workforce Modernization Act, which they termed “a bipartisan immigration bill that advances agriculture immigration reform.”

Sponsored by Judiciary Immigration Subcommittee Chair Zoe Lofgren, D-CA, and Congressman Dan Newhouse, R-WA, NMPF says, “The legislation would provide legal status to current agricultural workers and their families and reform the H2A guest-worker visa program to permit year-round agriculture to participate, a crucial need for dairy. The efforts of Chairman Lofgren and Representative Newhouse, both longtime champions for agricultural labor reform, are greatly appreciated by dairy farmers, who cannot wait any longer for action.”

“America’s dairy farmers are eager to advance and improve this legislation as it moves through the Congress,” said Mike McCloskey, a dairy farmer and chairman of NMPF’s Immigration Taskforce. “As producers of a year-round product, dairy farmers face a unique labor crisis because our jobs are not seasonal or temporary. From our years of work on these issues, we know first-hand just how hard immigration reform is. But we simply cannot and will not stop working to find a solution. Dairy needs workers for our industry to sustain itself. It’s that simple, and it’s that dire.”

Jim Mulhern, NMPF President and CEO, thanked the lawmakers for “putting forward this essential step for agriculture labor reform, saying the bill is a critical first step in the legislative process.”

“We have supported numerous efforts to address dairy’s acute labor needs. Passing legislation in the House is a critical step in the process. We urge the Senate to work with us on this important issue so we can get an ag worker bill across the finish line in this Congress,” Mulhern said. “The bipartisan Farm Workforce Modernization Act provides an important starting point for badly needed improvements to agriculture immigration policy. NMPF would like to thank Chairwoman Lofgren and Congressman Newhouse for their bipartisan leadership, and we look forward to continuing to work with them as this important legislation moves forward.”

Source:  leadertelegram.com

Milk Futures Slide Big While Cash Dairy Mixed in Chicago Thursday

On the Chicago Mercantile Exchange milk futures had a big slide on Thursday following the first significant drop in cash cheese markets in some time. November Class III milk down 28 cents at $19.95. December down 58 cents at $19.09. January 26 cents lower at $17.81. February down 17 cents at $17.05. March through June contracts one to nine cents lower.

Dry whey up $0.0050 at $0.2825. Twenty-one sales were made ranging from $0.2775 to $0.2850. Blocks down $0.0775 at $2.07. One trade was made at that price. Barrels down $0.06 at $2.33. Seven trades were made at $2.3275 and $2.33. Butter down $0.0175 at $2.0375. Nonfat dry milk unchanged at $1.2050

Milk Futures Give Back in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures closed lower Wednesday as increased dairy product numbers caught up with markets at midweek.  Class III quietly gave back some of its gains. November fell 7 cents to $20.23, Dec fell 12 to $19.64 and 2020 saw Jan – March fall 3-8 cents and is averaging at $17.42 per cwt. Class IV milk saw gains in every month but November which held unchanged at $16.78. December gained 5 to $16.93, and January gained 1 to $17.06 per cwt

Cheddar barrels continued to move higher but again saw no loads come to the table. Blocks down $0.01 at $2.15. Three trades were made ranging from $2.15 to $2.1575. Dry whey unchanged at $0.2775. Butter down $0.0075 at $2.0550. Nonfat dry milk up $0.0125 at $1.12050. One trade was at that price.

Grain markets moved lower ahead of Friday’s World Supply and Demand report. December corn fell 3 to $3.78 ¾, November soybeans fell 6 ¾ cents to $9.15 even, and we see soybean meal fall below $300 once again, falling $3.80 to $298.90 per ton.

Dairy prices up 3.7 percent at Global Dairy Auction

Global dairy commodity prices have recorded a big rise at the latest Global Dairy Trade (GDT) auction, due to strong demand from key markets.

The global dairy commodity price index lifted 3.7 percent, with average prices reaching US$3446/t.

Prices have continued to hold in the range of US$3200-3400/t since early 2019.

NZX dairy analyst, Robert Gibson said the NZX Dairy Derivatives market had expected prices to lift for whole milk powder (WMP), skim milk powder (SMP) and anhydrous milk fat (AMF), and butter.

“These results are likely due to strong demand continuing from key markets, and some flattening off of volumes sold as New Zealand heads out the tail end of its peak production month,” he said.

WMP prices were up 3.6 percent to an average price of US$3254/t. 

Although prices eased slightly for December contracts, they lifted for all remaining contracts in the range of 3.6 percent to 5.2 percent. 

SMP prices lifted 6.7 percent to an average price of US$2924/t. 

Gibson said there were strong increases across all delivery dates from 4.5 percent for near term December deliveries, up to 8.0 percent for April deliveries further out. 

“SMP prices have only started to climb since early September after remaining flat for most of 2019 and may reflect a lack of intervention stocks available to purchases, as well as less volumes being sold into Asian markets as buyers compete for product. SMP is now at its highest level since March 2015.”

Milkfat prices were also up, with the price index for AMF up 2.6 percent, and butter up 0.2 percent compared with the previous event. 

Butter prices remained a little more mixed as buyers adjusted their volumes purchased to market prices, said Gibson.

Source: newshub.co.nz

Fonterra milk intake falls 22pc as Australian market tightens

Trans-Tasman dairy giant, Fonterra, says high farm input costs, poor seasonal conditions and declining herd numbers continue to sap its milk business in Australia.

Milk collections in September were down 15.2 per cent on the same month last year, while receivals for the first quarter of 2019-20 have dropped 22.1pc on the previous season.

The tough summer weather forecast was not offering much confidence of improved farming conditions or milk output, either.

The New Zealand dairy behemoth also echoed comments from local rival, Bega Cheese last week, reporting in its latest global dairy update “intense competition for milk is impacting on Fonterra’s milk supply”.

While it said milk collection in NZ lifted marginally to 309 million kilograms (milk solids) for the first three months of the season, in Australia receivals were down almost a quarter to total 23.2m kilograms

Spring-summer forecasts are for well below average rainfall and we above-average temperatures across the majority of Australia, which will continue to pressure milk production if the seasonal forecast materialises

Fonterra noted Dairy Australia had forecast another year of declines for milk production of about three to five per cent in 2019-20.

Australian production for the 12 months to August fell more than 6pc on the previous corresponding period, while NZ output was about 1.2pc higher, the US up marginally (0.3pc), and the European Union was flat.

“The Bureau of Meteorology spring-summer forecasts are for well below average rainfall and we above-average temperatures across the majority of Australia, which will continue to pressure milk production if the seasonal forecast materialises,” Fonterra’s global outlook reported.

In Europe, despite significant increases in production from Britain, Ireland and Poland, large volume declines were recorded from herds in Italy, France and the Netherlands.

Across the global industry the update observed strong growth in dairy exports from NZ and the European Union, but declining monthly trade from Australia and the US.

Aussie exports still up

Interestingly, despite Australia’s 6pc drop in its August results against 2018, the year-to-date export figures rose 3.5pc (26.6 tonnes) for the 12-month period.

Milk, butter and infant formula were the main drivers of growth – up a combined 63,131t, while cheese and whole milk powder exports slipped 33,350t.

Fluid milk and infant formula demand led a rise in China’s total imports from around the world in August – up almost 5pc (12,000t), with import increases for the year to August almost cracking 10pc.

Latin America has also been consuming more dairy imports – up 3.6pc for the year to July 30, with July volumes rising almost 10pc thanks to strong purchases of fluid milk and milk powder.

Asian imports (outside China) were up 5.1pc for the year to July, although down 1pc in July, while Middle East market imports fell about 6pc in the year to July, and 4.5pc in July.

Source: farmweekly.com.au

Global Markets Drive Milk Futures Higher in Chicago Tuesday

On the Chicago Mercantile Exchange milk futures closed higher Tuesday with support from global markets.  Class III milk markets were higher again on Tuesday. November added 8 cents to $20.27 per cwt, December was up 4 and first half 2020 ranged from 2 lower to 5 higher. Class IV milk was stronger as well, ranging from 2 to 13 cents higher. 

Dry whey down $0.0025 at $0.2775.  Eight trades were made ranging from $0.2750 to $0.2850.  Blocks down $0.0025 at $2.1575.  Six trades were made ranging from $2.1450 to $2.1575. Barrels up $0.0350 at $2.3750.  Butter unchanged at $2.0625.  Nonfat dry milk up $0.0025 at $1.1925.  One trade was at $1.1875

USDA Announces October Class III Milk Price at $18.72

The price of milk used for cheese production continues to head upward. Last week, the USDA announced that the October Federal Order Class III price reached $18.72 per hundredweight. That’s 41-cents more than September ‘s price and $3.19 higher than October 2018. It’s also the highest base price since November 2014

So far, the Class III price has averaged $16.37 during 2019.

The Class IV component price was four-cents higher than last month at $16.39, and $1.30 more than last year.

Meanwhile, the Wisconsin all milk price for September was announced at $19.90 per cwt., up 80-cents from August’s price and $2.40 more than the same time a year earlier.

Source: Wisconsin Ag Connection 

Milk Futures Hold at $20 and Milk Markets Mixed in Chicago Monday

On the Chicago Mercantile Exchange milk futures started the week mostly quiet in mixed trade.  Class III milk continued to be indecisive. November was unchanged at $20.19 with a 17 cent range during trading. December also unchanged at $19.70, and January gained a penny to $18.12, with February falling 3 to $17.21/cwt.  Class IV milk saw small gains though November was unchanged at 16.78, December gained 6 to $16.86 and January gained 2 cents to $16.92.

Dry whey down $0.0025 at $0.28. Fourteen trades were made ranging from $0.28 to $0.2850. Blocks up $0.0050 at $2.16. Five trades were made ranging from $2.16 to $2.1675. Barrels up $0.0150 at $2.34. One trade was made at $2.3225. Butter down $0.0175 at $2.0625. Four trades were made ranging from $2.0625 to $2.07. Nonfat dry milk up $0.0075 at $1.19. Three trades were made ranging from $1.1850 to $1.19.

Grain and feed markets continue their rangebound moves as harvest slogs along. December corn fell 6 cents to $3.83 ¼, November Soybeans gained 1 ¼ to $9.25 ¾, and December Soybean meal fell $1.50 to $302.40/ton.

Milk prices increase for WI farmers, 2020 forecasted as a success

After years of low milk prices, many Wisconsin dairy experts predict 2020 will be a recovery year for the industry.

The U.S. Department of Agriculture said September milk production was 0.6% higher than September of last year in Wisconsin.

That increase comes after several months of decline.

Agriculture experts say the increased production comes from the incentive of higher milk prices.

Right now, milk is about $18 per 100 pounds of milk which is about $2 more than last year.

Experts predict prices to reach $19 within the next month and remain strong through 2020.

Source: kbjr6.com

Milk Futures Pull Back While Cash Markets Show Strength in Chicago Thursday

On the Chicago Mercantile Exchange milk futures pulled back from earlier week gains Thursday while cash markets continue to show strength.   Class IV milk fell 3 in November to $16.78, but saw gains in forward months. December gained 2 to $16.80, January gained 1 to $16.82 per cwt. February unchanged at $17.16.  March through June contracts four cents lower to three cents higher.

Dry whey up $0.0025 at $0.2725.  One trade made at that price.  Blocks up $0.0025 at $2.1750.  Seven trades were made ranging from $2.1675 to $2.1750. Barrels up $0.0150 at $2.2875. Butter up $0.0025 at $2.0825.  Eighteen trades were made ranging from $2.07 to $2.0825. Nonfat dry milk unchanged at $1.1650. 

Grain and feed markets didn’t react much to the blanket of Halloween snow we saw across the corn belt. December corn fell ¾ of a cent to $3.90 even, November soybeans gained ¾ of a cent to $9.16 ¾, and December soybean meal gained $2.20 to $304.40 per ton.

Class III Crosses $20 for First Time Since 2014 in Chicago Wednesday

On the Chicago Mercantile Exchange milk futures continue to move higher Wednesday with November contracts pushing past $20 thanks to continued strength in the cash cheese market.   Class III milk futures turned in another solid round of trade Wednesday jumping 29 cents in November and 38 cents in December. The result is $20 milk on the board for the first time since 2014. November ended near $20.15 per cwt. December isn’t far behind as it settled around $19.35 per cwt. 2020 prices traded 9-18 cents stronger in the first quarter and 3-7 higher the remainder of the year. Class IV months traded slightly higher as well. 

Dry whey up $0.0025 at $0.27.  Eights trades were made at that price.  Blocks up $0.02 at $2.1725.  Four trades were made ranging from $2.1625 to $2.1725. Barrels up $0.02 at $2.2725. Butter down $0.0075 at $2.08.  Six trades were made ranging from $2.0675 to $2.0850. Nonfat dry milk up $0.0075 at $1.1650.  Five trades were made ranging from $1.1625 to $1.17. 

U.S. Milk Production Sees Rapid Growth Rate

Matt Gould, analyst and editor of the Dairy and Food Market Analyst newsletter, reports USDA’s latest Milk Production report “represents the fastest growth rate in milk supply in about a year:”

Source: Dairy Radio

Milk Follows Cheese Higher in Chicago Tuesday

On the Chicago Mercantile Exchange milk futures continue to move higher thanks to continued strength in the cash cheese market. We continue to see Class III milk follow the strength in the cash cheese trade. November gained 18 cents to $19.86, setting another contract high. December gained 33 cents to $18.92 and January – March of 2020 saw 4-13 cent moves higher to average $17.23 per cwt. Class IV milk gained 4 cents in November to $16.75, and December gained 17 to $16.74 with 2020 markets being relatively unchanged, other than January gained 6 to $16.73.

Dry whey down $0.0050 at $0.2675. Eleven trades were made ranging from $0.2650 to $0.27. Blocks up $0.01 at $2.1525. Four trades were made at $2.1450 and $2.1525. Barrels unchanged at $2.2525. Butter up $0.0050 at $2.0875. Four trades were made ranging from $2.08 to $2.0875. Nonfat dry milk up $0.0050 at $1.1575. Five trades were made ranging from $1.15 to $1.1575.

Grain markets saw a mixed day with markets down slightly during overnight trading to a mid-morning burst higher on rumors that China and the U.S. will be meeting to sign a trade agreement in Chile on November 17. The market is still shy to buy in and saw December corn gain 2 ¼ to $3.86 ¼, November soybeans fell 2 ½ to $9.18 ¼ and December soybean meal fell $1 to $303.00 per ton.

Milk Futures Higher on Large Volumes in Chicago Monday

On the Chicago Mercantile Exchange milk futures started the week higher supported by continued strength in the cash cheese market.  Big volume was once again witnessed in the November 2019 Class III markets with nearly 900 contracts trading. Futures values rose 13 cents to $19.68 per cwt while December strengthened 4 cents to $18.61. First half 2020 added 1-3 cents per cwt and ended at an average of $17.05 per cwt. Class IV traded 16 cents higher in November, up 12 in February, and March grew 5 cents per cwt. 

The cheddar block market was able to find a bid in the market Monday following the impressive month long 64 cent rally we’ve watched in the barrel market. Blocks added 2 cents of value on 3 trades moving its price up to $2.1425 per lb. Dry whey down $0.01 at $0.2725.  Thirteen trades were made ranging from $0.2725 and $0.2775.  Barrels up $0.0025 at $2.2525. Butter up $0.0225 at $2.0825.  Nonfat dry milk unchanged at $1.1525. 

Grain prices were weak to start out the week as corn lost 2 ¾ cent per bu. in December, wheat dropped 6-9 cents and soybeans traded a half cent higher to $9.20

Milk Futures Follow Cheddar Higher Thursday in Chicago

On the Chicago Mercantile Exchange Thursday milk futures were up and cash dairy prices were mixed.  Class III milk had trouble believing the cheddar prices the last couple days, but followed cheese higher on Thursday. October gained 2 cents to $18.67, November gained 36 to $19.37, and December gained $17 to $18.48. 2020 markets were more mixed – January – March were 1-8 higher , but April forward were 1-3 cents softer. We saw less action in Class IV milk. October was unchanged at $16.41, November fell a penny to $16.62, and November gained a penny to $16.53

Dry whey was up $.0025 at $.2925 cents per pound. Twenty-five sales were recorded from $.2875 to $.2950. Forty-pound blocks were up $.0150 at $2.1250 per pound. Five sales were recorded from $2.12 to $2.1250. Barrels were up $.0050 at $2.20 per pound. No sales were recorded. Grade AA Butter was down $.0025 at $2.0575 per pound. One sale was recorded at that price. Nonfat dry milk was down $.0025 at $1.1625 per pound. No sales were recorded.

The harvest lull has hit the grain and feed markets. December corn was off a penny to $3.86 ¾, November soybeans fell half a cent to 9.33 ¼, and December soybean meal fell $3 to $305.60 per ton.

Cheese Prices Continue Higher as Milk Futures Fall in Chicago Wednesday

On the Chicago Mercantile Exchange drifted Class III milk futures lower Wednesday, although the spot October contract settled unchanged at $18.65. November fell 8 to $19.10, and December fell 4 to $16.73 per cwt. Class IV milk reacted similarly. October fell 2 cents to $16.43, November fell 9 to $16.75 and December fell 13 cents to $16.73 per cwt.

Cheese continues its march higher Tuesday. Following huge leaps higher on Monday, we saw Cheddar blocks up $0.0075 at $2.11. Three trades made, ranging $2.1025 to $2.11. Barrels unchanged at $2.1050. Butter down $0.03 at $2.06.Nonfat dry milk steady at $1.1650. Dry whey up $0.0025 at $0.29. Twelve trades were made, ranging from $0.29 to $0.2925. 

Dairy Markets Start Week Sharply Higher in Chicago

On the Chicago Mercantile Exchange milk futures started the week sharply higher supported by strong movement in the cash cheese market.   Class III milk futures markets ended sharply higher. November ended 50 cents higher while December was up 34 cents. January traded 20 cents higher while the remaining months in 2020 were slightly higher. 

Dry whey unchanged at $0.2850.  Fourteen trades were made at $0.2825 and $0.2850.  Blocks up $0.1025 at $2.07.  Four trades were made ranging from $2.05 to $2.08. Barrels up $0.0525 at $2.0525. Butter up $0.0050 at $2.12.  Three trades were made at $2.1125 and $2.12.  Nonfat dry milk down $0.0050 at $1.1650.  One trade was made at that price.

Milk Futures Drop in Chicago while Cash Dairy Mixed

On the Chicago Mercantile Exchange Thursday milk futures were mostly down and cash dairy prices were mixed. Class III milk prices watched November mild decline 12 cents to a $18.50 settlement while December through July settled 4 lower, to 2 cents higher. First half 2020 is offering producers $17 per cwt at the close. Class IV markets fared better, ending even to 8 cents higher out through June 2020. The first half 2020 average is offering producer $17.32 per cwt for Class IV. 

Dry whey was down $.0125 at $.2925 cents per pound. Eight sales were recorded from $.2925 to $.3000. Forty-pound blocks were down $.0375 at $2.0025 per pound. Two sales were recorded at $2.0025 and $2.01. Barrels were down $.0200 at $2.00 per pound. No sales were recorded. Grade AA Butter was up $.0025 at $2.1450 per pound. Two sales were recorded at $2.14 and $2.1450. Nonfat dry milk was up $.0025 at $1.17 per pound. Eight sales were recorded at that price.

The grain market reacted in a favorable manner all day to the latest version of the United States and China trade saga as corn closed 3 cents higher at $3.94 3/4, soybeans added 3 ½, and wheat was up 12 cents in Chicago.

Milk Futures Down Butter Up in Chicago Wednesday

On the Chicago Mercantile Exchange Wednesday milk futures were mostly up and cash dairy prices down except for butter.  21 loads moved and helped butter move 2 ¼ cents higher to $2.14 ¼. Cheddar fell slightly but holds its average at $2.03 per lb. with blocks moving 1 load, a penny and half lower at $2.04 and barrels moving 4 loads half a penny lower at $2.02. Narrowing the block/barrel spread to 2 cents.  Dry whey was down $.0025 at $.3050 cents per pound. Twenty-one sales were recorded from $.3050 to $.3125. Nonfat dry milk was unchanged at $1.1675 per pound. Five sales were recorded from $1.16 to $1.1675.

Class III milk continued its move higher. October gained 2 cents to $18.62, November was unchanged at $18.68, and December gained 2 to 18.06/cwt. Jan – March of 2020 saw 3-4 gains to average at $17.00 per cwt. Class IV milk saw October gain 8 cents to $16.45, November was unchanged at $16.82, and December fell 4 cents to $16.76 per cwt.

Grain and feed markets were quiet again and took a small step lower. December corn fell 1 ½ cents to $3.91 ¾, November soybeans fell 6 cents to $9.28, and December soybean meal fell $3.00 to $304.80 per ton.

Global Dairy Markets Up 1/2%

Event 246 of the Global Dairy Trade took place on Tuesday with the overall index climbing a half percent.  This is the third consecutive twice monthly GDT trading session that markets have strengthened.  One-hundred-99 bidders were involved in the sale of more than 38-thousand metric tons of products.

The increase in prices came mostly on the strength of the rising skim milk powder market, which was up 2.4% today to $1.24/lb. Whole milk powder was unchanged at $1.42/lb.  Other products that gained included anhydrous milk fat and Rennet casein. More than three-quarters of Tuesday’s sales were whole milk powder and skim milk powder. Products that fell in GDT were butter, down four tenths of a percent at $1.815 and cheddar which lost 2.2% and ended at $1.65 per lb. Whole milk powder was unchanged at $1.42 per lb.

Both cheddar cheese and butter prices in the U.S. domestic market are out-pricing world prices by substantial margins. Blocks of cheddar here are trading at $2.11/lb; butter is at $2.07/lb.

U.S. skim milk prices are trading competitively vis-a-vis world prices, at $1.17/lb. Whole milk prices, though, are well above world prices at $1.75 to $1.80/lb.

For the complete GDT results, click here.

Markets Higher in Chicago Tuesday after GDT Report

On the Chicago Mercantile Exchange Tuesday milk futures were up and cash dairy prices were mixed. November and December added 6 and 9 cents. First quarter 2020 prices traded 6-10 cents higher while the balance of 2020 was slightly higher. Class IV markets were up 9 and 13 in November and December also. 

Dry whey was up $.01 at $.3075 cents per pound. Nine sales were recorded from $.30 to $.3075. Forty-pound blocks were down $.0175 at $2.0550 per pound. Four sales were recorded from $2.0450 to $2.0550. Barrels were unchanged at $2.0250 per pound. Six sales were recorded at that price. Grade AA Butter was up $.01 at $2.12 per pound. Seventeen sales were recorded from $2.11 to $2.12. Nonfat dry milk was unchanged at $1.1675 per pound. No sales were recorded.

Grain prices stepped back on Tuesday after reservations of whether China will follow through and sign Phase 1 of a potential trade deal. Corn lost 4 cents, soybeans were down 6.5 cents, and the wheat complex softened 4-5 cents.

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