Archive for Dairy Markets

Milk Markets Continue to Head Lower in Chicago

At the Chicago Mercantile Exchange, Class III milk futures closed mostly lower Wednesday. Class III milk futures markets had October down 6 cents at $15.56 per cwt. while November through April 2019 dropped 11-13. May 2019 through December 2019 ranged from 3 cents lower to 8 cents higher. The first half 2019 market is now offering $15.82 per cwt. while the full year stands at $16.12 per cwt. Class IV milk was unchanged in 2018, 4 cents lower in January and February 2019, and 1-4 cents higher March through December 2019. The average Class IV first half price is offering $15.34 per cwt. and the full year is trading at $15.70.

Cheddar blocks and barrels found follow-through selling after Tuesday’s GDT event as blocks weakened 3 cents and barrels fell 4 cents. Blocks traded 3 loads and closed at $1.59 per lb. while barrels moved 5 lads and settled at $1.29 and a quarter. Butter was up $0.0150 at $2.2850. Eleven sales were made ranging from $2.28 to $2.2925. Nonfat dry milk closed down $0.0050 at $0.8675. Dry whey was up $0.0050 at $0.5750. Two sales were made at that price.

Markets Soften in Chicago Tuesday

At the Chicago Mercantile Exchange class III milk futures closed mixed Monday following the tone of the cash market. October 2018 through December 2019 ranged from 3 cents lower to 5 cents higher. October closed a penny lower at $15.60. November down four cents at $15.72. December down seven cents at $15.73. January four cents lower at $15.72. February through next September contracts closed unchanged to a nickel higher. Class IV markets were unchanged October through February 2019 while March through May added 2 cents and June through December each gained 3 cents. 

CME spot product markets on Tuesday had butter soften 2 cents to $2.27 per lb. following 4 trades, 1 bid and 3 offers. Cheddar blocks traded 1 load and gained a penny to $1.62 per lb. Barrels dropped a half cent to $1.33 and a quarter. Grade A nonfat dry milk closed unchanged at 87 and a quarter while dry whey moved three-quarters of a cent higher to 57 cents per lb. even.

Event 222 of the Global Dairy Trade was released Tuesday resulting in the overall index losing three-tenths of a percent. Products to note included butter, which added 2.4% to $1.82 per lb. Cheddar lost 1.8% and finished at $1.54 and a half cents. Skim milk powder was unchanged and whole milk powder declined nine-tenths of a percent. 

Butter Higher and Mixed Results for Futures in Chicago Monday

At the Chicago Mercantile Exchange, class III milk futures maintained mixed results in the end, with the average for the balance of 2018 falling 4 cents to finish at $15.68 per cwt. while the first half of 2019 gained a penny to finish at $15.91. October closed a penny lower at $15.60. November down four cents at $15.72. December down seven cents at $15.73. January four cents lower at $15.72. February through next September contracts closed unchanged to a nickel higher. In the Class IV market. Both periods moved higher, with the average for the remainder of 2018 now resting at $15.03 while the first half of next year advances to $15.32.

Seasonal interest for butter continued to push prices higher on Monday after six loads moved from seller to buyer and 4 cents was added to price. On a per pound basis, butter now finishes at $2.29.  Barrels were down $0.0225 at $1.3075. Eight trades were made ranging from $1.3350 to $1.34. Blocks were unchanged at $1.61. One trade was made at $1.58. Nonfat dry milk closed $0.0050 higher at $0.8725. Dry whey was unchanged at $0.5625.

Fonterra revises milk forecast down

Fonterra suppliers have been dealt a blow with the co-operative revising its 2018-19 forecast farm-gate milk price from $6.75 to a range of $6.25-$6.50.Chief executive Miles Hurrell cited the stronger global milk supply relative to demand for the revision, which was not unexpected.

Rough estimates from economists suggested the revision would lower farm incomes by $380million to $760million.

Fonterra cautioned it was early in the season and there was potential for considerable volatility ahead. Caution was required when setting farm budgets.

In a statement, Mr Hurrell acknowledged it was hard for farmers when the forecast milk price dropped but said it was important they had the most up-to-date picture so they could make the best decisions for their farming business.

One farmer on social media said $33,000 of forecast income had been wiped from his budget since Fonterra’s opening forecast to the latest review, and he had only a small farm.

However, it was good the co-operative was communicating forecast changes sooner than DIRA required, he said.

Mr Hurrell said there was still strong production from Europe, the United States and Argentina. While hot weather in Europe had slowed the region’s production growth, it was still tracking ahead of last year. US milk production was up slightly and Argentina’s was up 6.8%.

In New Zealand, the season had got off to a positive start, mainly thanks to good weather and early calving in the South Island.

As a result, Fonterra had increased its forecast milk collections for the year to 1.550billion kg ms, up 1.3% from 1.525billion kg ms.

At recent GlobalDairyTrade events, prices for all products that make up the milk price had fallen.

Demand for whole milk powder, in particular, continued to grow in China and remained strong across South East Asia, but was simply not matching present levels of supply, Mr Hurrell said.

Providing a range for the forecast milk price, which was a new move, was part of the co-operative’s intention to provide the best possible signals, he said.

”We operate in a hugely volatile global market place, so it is very difficult to pinpoint an exact forecast farm-gate milk price this early in the season.

”For example, weather conditions can change suddenly and this can have a significant impact on the global milk supply.”

Given Fonterra intended to make advance payments to farmers on the basis of a $6.25 milk price, rather than the mid-point of the range provided, Westpac senior economist Anne Boniface said that might suggest the co-operative saw the risks to its forecast skewed to the down side.

ASB economists said Fonterra’s previous forecasts had looked ”on the high side” and a downward revision was anticipated.

The forecast range was now set at a more realistic level. The shift to using a range rather than a point estimate was an acknowledgement of the uncertainties to the outlook.

In the short term, the bank expected more downward pressure on dairy prices. New Zealand was at its seasonal peak in production in October and, in line with that, peak auction volumes were also at their highest level for the year.

 

Source: Otago Daily Times

Bearish Supply and Demand Report Causes Mixed Markets in Chicago

At the Chicago Mercantile Exchange Class III milk futures closed lower Thursday pressured in part by lower global market prices and a bearish supply and demand report. October through December lost 9-14 cents per cwt. The 2019 average ranged from 2-12 cents softer. Class IV milk moved in the opposite direction. January through April up 7 cents each and May through December 5 cents higher, respectively.  October closed nine cents lower at $15.66. November down 13 cents at $15.76. December down 14 cents at $15.80. January nine cents lower at $15.75. February through next September contracts closed three cents lower to 12 cents lower.

CME spot product markets on Thursday were mainly higher. Blocks and dry whey were the exceptions as blocks fell a penny to $1.65 per lb. Whey was unchanged at 56 and a quarter cent per lb. Barrels added a half cent following 8 trades and 12 bid to settle at $1.37 per lb. Grade A nonfat dry milk moved 1 and a quarter cent higher to 87 cents on 8 bids. Butter was the big mover as it jumped 4 cents to $2.26 and three-quarter cents per lb. after 1 trade and 7 bids.

In their October World Agriculture Supply and Demand Estimates report, USDA boosted both milk production and the 2019 all milk price forecast. The milk production forecasts for 2018 and 2019 were increased from the previous month on a more rapid pace of growth in milk per cow, USDA reported. The dairy herd continues to grow and cow numbers are raised for 2019. USDA expects strength in butterfat and cheese imports. The Class III price is lowered for 2018; but for 2019, higher whey prices are expected to more than offset the declines in cheese prices, and the Class III price forecast is raised, USDA noted. USDA increased Class IV price estimates for both years due to higher forecast butter prices. The 2018 all milk price forecast is unchanged at the midpoint at $16.35 to $16.45 per cwt, and the 2019 price is raised to $16.85 to $17.75 per cwt. However, the 2018 and 2019 skim-solids based imports are lower. USDA bumped 2018 fat basis exports higher for 2019 but made no change to the 2019 forecast. USDA increased 2018 and 2019 butter and whey price forecasts from the previous month on expected demand strength, but they lowered cheese price forecasts on continued large supplies. The NDM price forecast was unchanged.

Milk Futures Lower, Cash Dairy Higher in Chicago Wednesday

At the Chicago Mercantile Exchange, Class III milk futures closed mostly lower Wednesday pressured in part by lower global market prices. October closed a nickel lower at $15.75. November down a time at $15.89. December down eight at $15.94. January seven cents lower at $15.84. February through next September contracts closed two cents lower to two cents higher.

Barrels were up $0.0050 at $1.3650. Blocks were $0.0050 higher at $1.66. Butter was down $0.0225 at $2.2275. Nonfat dry milk closed unchanged at $0.8575. One sale was made at $0.8550. Dry whey up $0.0050 at $0.5625. Two trades were made at $0.56 and $0.5625.

Mixed Markets in Chicago Monday

At the Chicago Mercantile Exchange class III milk futures closed mixed Tuesday somewhat pressured by the cash market. Class III milk prices, despite the lower spot trade moved higher with the average for the first half of 2019 settling 5 cents higher at $15.95. Class IV markets moved the opposite direction returning to an average price for the first half of the 2019 calendar at $15.31. October closed four cents lower at $15.80. November four cents lower at $15.99. December up two cents at $16.02. January four cents higher at $15.91. February through next September contracts closed two to six cents higher.

Barrels were down $0.0150 at $1.36. Five trades were made ranging from $1.3450 to $1.36. Blocks were $0.0250 lower at $1.6550. Three trades were made ranging from $1.65 and $1.66. Butter was down $0.01 at $2.25. Twelve trades were made ranging from $2.2375 to $2.25. Nonfat dry milk closed $0.0025 lower at $0.8575. Dry whey remained unchanged at $0.5575.

Mixed Markets in Chicago Monday

At the Chicago Mercantile Exchange,  class III milk futures closed in a narrow range Monday following the mixed tone of the cash market. The average price of Class III milk from now through the end of the year ate down a 2 cent game to finish at $15.96. The first half of 2019 remained unchanged at $15.89 Class IV milk follow the exact same pattern with the remainder of 2018 averaging $15.19 per cwt. and the first half of 2019 averaging $15.35.  October closed three cents higher at $15.84. November two cents lower at $16.03. December up three cents at $16.00. January two cents higher at $15.87. February through next September contracts closed a nickel lower to a penny higher.

Barrels were up $0.0075 at $1.3750. Five trades were made ranging from $1.3850 to $1.39. Blocks were $0.03 higher at $1.68. Two trades were made at $1.67 and $1.68. Butter was down $0.03 at $2.26. Seven trades were made ranging from $2.26 to $2.2875. Nonfat dry milk closed $0.0150 lower at $0.86. One trade was made at that price. Dry whey was unchanged at $0.5575.

Dairy Markets Quiet in Chicago Thursday

At the Chicago Mercantile Exchange class III Milk futures had a fairly quiet day. October milk closed a penny higher at $15.82. November down three cents at $16.01. The December contract was unchanged at $15.98. The January through April contracts were up a penny to down three cents.

Barrels were unchanged Thursday at $1.3850. Six trades were made, ranging from $1.3850 to $1.39. Blocks settled $0.0050 higher at $1.6750. Eight loads sold, ranging from $1.6450 to $1.6650. Butter closed down $0.0375 at $2.2925. 16 trades, ranging from $2.2775 to $2.32. Dry weigh was up $0.0025 at $0.5625. Nonfat dry milk unchanged at $0.8750. Five loads sold, ranging from $0.86 to $0.8750.

Milk Markets Struggle in Chicago Wednesday

Class III milk futures for October closed down 13 cents at $15.81 at the Chicago Mercantile Exchange on Wednesday. October closed down 13 cents at $15.79 per cwt. November dropped 29 cents while December settled 21 cents lower. The 4th quarter 2018 average now stands at $15.90 per cwt.  The January through April contracts were down 9 to 13 cents.

In the cash trade, Barrels finished steady at $1.3850 Wednesday. Three loads sold, ranging from $1.3925 to $1.3975. Blocks were down four cents at $1.67. Three trades were made, ranging from $1.67 to $1.69. Butter finished a half cent lower at $2.33. Dry weigh closed steady at $0.56. And there was no change on nonfat dry milk, as it settled again at $0.8750.

Mixed Results with Trade Deal on Milk Markets

Class III milk futures closed higher in the nearby contracts at the Chicago Mercantile Exchange Monday. Class III milk market was only able to eke out a 6 cent gain and its average of the fourth-quarter, rising to $16.14, while next year’s average rose 6 cents as well to $16.23. October milk gained four cents, closing at $15.94. November down seven at $16.29. The December contract was down six cents Tuesday at $16.13. The January through March contracts were down four to seven cents.

locks rose 5 and three-quarter cents to finish at $1.74 and three-quarters, while barrels rose 3 and three-quarters cents to finish at $1.42. In the wake of this trade, the spread moves to a record width of 32 and three-quarter cents. Grade A nonfat dry milk rose a half cent to finish at 88 cents a pound while butter dropped 2 and a quarter to finish the session at $2.29 and three-quarters way remained unchanged at 55 cents. 

Dairy prices fall to eight-month low

Dairy prices have fallen to the lowest level in eight months, in the latest global auction overnight.

The average price fell 3.6 percent to $US3044 a tonne.

It’s the lowest average price since December, and follows an unchanged price in the previous auction.

The price of whole milk powder – a key factor in setting returns to local farmers – fell 2.1 pecent.

And the volumes sold were down 6 percent.

The continued low prices are likely to put pressure on Fonterra’s forecast payout to farmers of $7 a kilo of milk solids for the season just started.

 

Source: Radio NZ

Butter Gains as Cash Dairy Higher and Milk Futures are Mixed

At the Chicago Mercantile Exchange class III milk futures closed mostly lower Thursday as declining global markets and increasing interest rates weighed on the market. Class III finished at $16.17, while the average for the first half of 2019 dropped 2 cents to $16.02. Class IV markets remained unchanged. September milk closed down three cents at $16.11. October unchanged at $15.95. November two cents lower at $16.37. December down a penny at $16.21. January through next August contracts closed four cents lower to two cents higher.

Dry whey made another new record,  up $0.01 at $0.5450.It was butter’s turn in the CME spot trade to move higher and lead the pack in volume, 15 loads move from seller to buyer as prices rose 2 and a quarter cents to finish at $2.32 cents a pound. Barrel cheese rose another quarter cent after eight loads traded to move to $1.40. While block cheese remained again unchanged, did not trade and once more finds itself at $1.66. On trade was made at $0.5425. Grade A nonfat dry milk was unchanged did not trade and again is at 87 and a half cents. 

Barrels Stay Strong, Cash Dairy Mostly Higher, Milk Futures Mixed in Chicago Wednesday

At the Chicago Mercantile Exchange class III milk futures closed mixed Wednesday supported somewhat by a strong cash market. For the fourth quarter average, which again finishes at calendar average ends at $16.22. Class IV once again found support with nearby prices rising as much as 13 cents. The average price from now through the end of the year moves a nickel higher to $15.21, and the 2019 average remains unchanged at $15.96. September milk closed unchanged at $16.14. October up six cents at $15.95. November three cents lower at $16.39. December down four cents at $16.22. January through next August contracts closed two cents lower to four cents higher.

Barrels jumped 5 and three-quarter cents to finish at $1.39 and three-quarters while blocks rose 2 and a half cents to $1.66. This leaves the spread between the two at 26 and a quarter cents.  Butter rose as well, moving a penny and three-quarters higher to $2.29 and three-quarters while whey futures set a new record moving up to 53 and a half cents, just a half cent higher over Tuesday’s finish. Grade A nonfat dry milk remained unchanged and ends once more at 87 and a half cents. Dry whey closed up $0.0050 at $0.5350.

 

CWT Assists with 1.3 Million Pounds of Cheese and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted five offers of export assistance from CWT that helped them capture contracts to sell 850,984 pounds (386 metric tons) of Cheddar cheese, and 440,925 pounds (200 metric tons) of whole milk powder. The product has been contracted for delivery in Asia and Oceania for the period from October 2018 through March 2019.

CWT-assisted member cooperative 2018 export sales total 51.952 million pounds of American-type cheeses, 12.962 million pounds of butter (82% milkfat) and 52.298 million pounds of whole milk powder to 35 countries on five continents. These sales are the equivalent of 1.153 billion pounds of milk on a milkfat basis. Totals have been adjusted to reflect bid cancellations.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

 

Inventories Drop But Prices Rise in Chicago

At the Chicago Mercantile Exchange, class III milk futures closed mixed Monday as dairy products in cold storage showed inventories are moving while cash prices were limited. The market was able to move from low single digit losses early in the session to low single-digit gains later after product traded. By the end of trade, the average price from now through the end of the year finished unchanged at $16.20.  September milk closed a penny lower at $16.13. October down a nickel at $15.99. November two cents higher at $16.39. December up three cents at $16.27. January through next August contracts closed unchanged to six cents higher. Class IV markets followed suit with the average from now through the end of the year rising 4 cents to $15.09.

While the price of cheese and butter was on the rise and Monday session, their inventories were not, and so we enter the seasonal drop down for product. In Monday’s cold storage report butter dropped 9% from July’s inventories to 290.8 million pounds, however, that number is still 4% greater than August 2017.  Total natural cheese in inventory dropped as well falling 4% from last, however the 1.36 billion pounds that’s still in storage is 2% larger than last August.  Barrels were up $0.02 at $1.38. Twelve trades were made ranging from $1.32 to $1.38. Blocks were unchanged at $1.6350. Dry whey closed up $0.0075 at $0.5225. Nonfat dry milk remained unchanged at $0.8725

Dairy Situation and Outlook, September 19, 2018

With favorable domestic sales, slower growth in milk production and higher dairy exports September milk prices will be higher than August. Higher cheese and dry whey prices will push the September Class III price to around $16.00 compared to $14.95 in August and a low of $13.40 back in February. While the price of butter will average lower this will be more than offset by high nonfat dry milk prices pushing the September Class IV price to around $14.70 compared to $14.63 in August and a low of 12.87 back in February.

Fluid (beverage) milk sales continue to trend lower. Fluid milk sales January through July were 2.2% lower than a year ago. But, with butter and cheese sales running higher total domestic sales of milk and dairy products for September will be higher than a year ago and positive for milk prices. July milk production was up just 0.5% from a year ago which was also positive for milk prices. But a little surprising August milk production improved to 1.4% higher than a year ago. Milk cow numbers fell by 9,000 head June to July but regained 5,000 head in August. August Cow numbers were down slightly from a year ago but an improvement in milk per cow of 1.4% higher than a year ago resulted in the 1.4% increase in total milk production. This higher than expected increase in August milk production could dampen milk prices some. But, schools are now in session moving more milk to fluid use and less for cheese production, and the fact that the sales of butter and cheese improve seasonally during the thanksgiving to Christmas period is still positive for milk prices.

Contributing to the higher August milk production were increases in California milk production of 1.2%, Wisconsin and Minnesota by 1.4%, South Dakota by 2.7%, Texas by 9.5%, New York by 1.7% and Idaho by 0.9%. Both Kansas and Colorado had increases of 8.6%. Dairy expansions were still evident in Texas, Kansas and Colorado by the fact that these states had 20,000, 8,000 and 14,000 more cows respectively than a year ago. In contrast Michigan had 5,000 fewer cows reducing their milk production by 0.6%, Pennsylvania had 6,000 fewer cows reducing milk production by 2.6% and Florida had 5,000 fewer cows reducing milk production by 7.3%. While California had 12,000 fewer cows, milk per cow had improved to 1.9% higher than a year ago. Wisconsin had 4,000 fewer cows but milk per cow was 1.7% higher.

Retaliatory tariffs imposed by Mexico and China beginning in July is having some impact on dairy exports. It appears that Mexico in anticipation of their 25% tariff on U.S. cheese increased cheese imports from U.S. by 43% in June compared to a year ago because July imports were 1% lower than a year ago. July cheese exports to China dropped 56% from a year ago with whey exports down 26%. With China being the largest U.S. market for whey products July whey exports were 8% lower than a year ago, the lowest whey exports in more than two years. While the volume of dairy exports in July were the lowest since January they remained above a year ago due to continued strong exports of nonfat dry milk to Mexico and higher exports of dairy products to other U.S. international customers. Compared to a year ago, July exports of nonfat dry milk/skim milk powder were 30% higher, cheese just 1% higher, butterfat 84% higher and lactose 15% higher. On a total milk solids basis July exports were equivalent to 15.0% of U.S. milk production bringing the year-to-date to 16.6% of U.S. milk production.

While stocks of dairy products remain more than adequate to meet demand they did tighten some in July. Compared to a year ago, July 31st stocks of butter were just 3.5% higher, American cheese stocks 0.8% lower, stocks of cheese varieties other than American 9.1% higher bringing total cheese stocks to 3.3% higher. Nonfat dry milk stocks were 21.3% lower and dry whey stocks 21.7% lower.

How retaliatory tariffs impact U.S. dairy exports in the months ahead continues to bring uncertainty to future milk prices. But, for the last quarter of the year domestic demand should continue to run above a year ago and the growth in milk production may increase by no more than 1%. Even if U.S. dairy exports show some more weakness the Class III price could stay in the low $16’s and the Class IV price in the low $15’s. Looking into 2019 a continued relatively strong economy will be positive for domestic sales. The growth in milk production is likely to stay well below 2%. Milk cow numbers may show little or no increase. With anticipated somewhat lower feed prices milk per cow may improve some. USDA is forecasting just a 0.1% increase in cow numbers and a 1.4% increase in milk per cow bringing the increase in total milk production to 1.5%. If retaliatory tariffs remain, USDA is forecasting lower dairy exports but not falling to a level that will lower milk prices compared to 2018. In fact, USDA’s is forecasting that 2019 milk prices could average higher than 2018. I think it is reasonable to assume milk prices will average higher in 2019. The level of milk production and dairy exports will be major factors in how much higher.

 

Source: UW Extension

Milk Markets Relatively Flat at CME Thursday

At the Chicago Mercantile Exchange class III milk futures closed mixed Thursday with a stagnant cash trade and slightly larger milk supply weighing on the market. The average from now through December finished unchanged at $16.13 while the first half average of rose 3 cents to $15.91.  September milk closed unchanged at $16.14. October was down nine cents at $16.02. November up three cents at $16.27. December up seven cents at $16.10. January through next August contracts closed a penny lower to three cents higher. Class IV markets soften with the average from now through the end of the year dropping 6 cents to $15.04.

Butter closed unchanged at $2.3050. Nine trades were made ranging from $2.30 to $2.3125. Barrels unchanged at $1.39. Two trades were made at that price. Blocks remained unchanged $1.6150. Nonfat dry milk closed down $0.01 at $0.8725. Three trades were made ranging from $0.85 to $0.8725. Dry whey remained unchanged at $0.5250.

Markets Mixed in Chicago Thursday

At the Chicago Mercantile Exchange class III milk futures closed mixed Wednesday ahead of a slightly bearish milk production report. Class III prices rose across the board with the average from now through the end of the year, rising a nickel to $16.13.  September milk closed up a penny at $16.14. October down a nickel at $16.11. November up six cents at $16.24. December up nine cents at $16.03. January through next August contracts closed a penny lower to six cents higher. Class IV markets saw trading in nearby contracts elevating the average price from now through the end of the year to $15.10, up 13 cents from Tuesday’s finish.

A quick glance at the CME spot trade revealed very similar results to Tuesday. Butter rose another 3 cents to move to $2.30 in the half cents a pound. Grade A nonfat dry milk rose a penny and a half to finish at 88 and a quarter. Barrel cheddar dropped a penny and three quarters to finish at $1.39 while blocks remained unchanged at $1.61 and a half. Dry whey remained unchanged as well and finishes once more at 52 and a half cents.

For October, the USDA has set the base Class I milk price at $16.33 per hundredweight, up $1.48 from September, with the base Class I skim price at $7.71, up $1.79.

The USDA says cash dairy had another strong week of modest gains. The USDA reports cash butter for the week ending September 8th averaged $2.30 per pound, $0.2 higher than the previous week. Blocks of cheddar were pegged at $1.68, $0.02 higher. Barrels averaged $1.64, up $0.033. Dry whey prices averaged $0.397, up $.018. Nonfat dry milk averaged $0.845, up $.018.

What’s Wrong With These Charts? – MilkPrice

New production, inventory, and export data is now available.  Warning – some of these charts may be offensive!

As covered in prior posts, the linkage between the cheese price and the Class III milk price is firm.  As goes cheese, so goes Class III milk.  If the price of butter goes up, that can be good for producers only if they can produce more butterfat than they used to.  The price of butter has very little influence on the Class III price, which uses standardized component levels.

The charts below show how out-of-balance production, inventories, exports are for cheese, butter, and nonfat dry milk.

Cheese production is way above any normal growth pattern for consumer and export demand (Chart I).

Chart I – Cheese Production

Cheese inventories are running extremely high (Chart II).  The very high inventories have been building for almost two years.  The inventories are well above what is needed for the normal demand growth, which is shown via the chart trend line.

Chart II – Cheese Inventory

Exports of cheese (Chart III) are not showing any growth at all.  While there is lots of hype about increasing exports, when it comes to cheese, there is no growth in exports.

Chart III – Cheese Exports

Is cheese a good place to hide excess milk production?   It can be held for a while, but the end result is high inventories and low prices.  While there is news in the press about the impact of Mexican tariffs on cheese, what we are looking at is a long-term issue, not something that just happened in the last few months.

Predictably, the price of cheese is low and getting lower.

Chart IV – Cheese Prices

When we look at nonfat dry milk/skimmed milk powder (NDM/SMP), the pictures are a little different, but show some of the same patterns.  The charts again show production well above the normal growth line.  This is probably caused by the demand for butter.  Excess NDM/SMP is more of a by-product than a co-product.

Chart V – NDM/SMP Production

When we look at stocks of NDM/SMP, it is very easy to see levels well above the norms.

Chart VI – NDM/SMP Inventory
The export chart for NDM/SMP showed great growth for three months, but since April 2018, the exports levels have fallen.  Did the earlier 2018 exports just shift the excess stocks to another country and now those must be reduced?  If so, we may see a leveling of the year over year exports of NDM/SMP.
 
Chart VII – NDM/SMP Exports
Putting the NDM/SMP pieces together, results in the very predictable pattern of low prices.  The current prices are the lowest in the 19 years shown in Chart VIII.

 

Chart VIII – NDM/SMP Prices

Butter analytics have a strange but very different profile.  Butter domestic consumption is growing at a current rate of 2.6% per year.  But production is not growing at all.  Chart IX below shows no growth in the last seven years.

Chart IX – Butter Production

In spite of consumer growth in butter consumption, inventories are currently at or below the levels of the prior two years.

Chart X – Butter Inventory

Exports of butter are growing.  YTD in the first half of 2017, 2.7% of butter production was exported.  That has risen to 4.5% in 2018, a dramatic increase.  But at 4.5% butter exports have the lowest export rate of any major dairy export item.  What is being exported is going mostly to Canada with a significant volume also being exported to Mexico.

Chart XI – Butter Exports
The range of prices for butter has narrowed, but they have stayed above $2/lb. which is the average for the last four years.  Tight inventories always result in high prices.
 
Chart XII – Butter Prices

In summary, we have too much cheese, too much NDM/SMP, and not enough butter. These inventories in turn result in low Class III milk prices, low milk protein prices, and high butterfat prices. 

The mix of too much NDM/SMP and too little butter is certainly a contrarian problem that will continue.  Both products come from the same Class IV milk and you can’t have one without the other.  That may currently be limiting butter churning. 

The over supply of cheese is probably being forced by the oversupply of milk.  The supply of milk is not dropping, but sooner or later, it will have to drop.  Once it drops, inventories will begin to drop and only then will the Class III milk price improve.

Source: MilkPrice

Chinese Retaliation Against U.S. Tariffs Brings Milk Markets Down

At the Chicago Mercantile Exchange, milk futures were mostly down and cash dairy prices were mixed Tuesday, in light of the announcement by the Chinese to retaliate against the most recent round of U.S. tariffs. Class III  finishing a nickel lower in its average from now through the end of the year at $16.08. September Class Three milk was up $.01 to $16.13.  October was down $.05 to $16.06. November was down $.07 at $16.18.  December was down $.10 to $15.94. The milk futures from January through next August ranged from one to six cents lower.

The Global Dairy Trade index fell 1.3% during Tuesday’s trading event (Event #220) with the average price at $2,934 per ton. Cheddar led the charge in its decline lower falling 3.5% to $1.59 a pound while from a volume-weighted standpoint, whole milk and skim milk powder where the real detractors in the declining index. Whole milk powder fell 1.8% to $1.26 a pound while skim milk powder fell 1.1% to 96 cents a pound. Those two products account for more than 75% of the volume in the GDT auction. 

Later that would translate into a lower Grade A nonfat dry milk price were in the CME spot trade. The price fell a quarter sent to 86 and three quarters. Barrels were down $.0125 at $1.4075 per pound in line with the GDT trade dropping a penny and a quarter to $1.40 and three quarters.  Blocks took the opposite direction rising a penny to $1.61 and a half. Butter followed suit in that regard moving another penny and half higher to $2.27 and a half while whey set another record at 52 and a half cents, up another quarter cent. 

 

New Tariff Announcements Drive Dairy Markets Lower in Chicago

At the Chicago Mercantile Exchange, Class III milk futures closed mostly lower Monday, pressured by a mostly inactive cash session. Over the weekend, the Trump administration announced another 10% tariff on another 200 billion of imported Chinese goods. That adds to the 50 billion that are already being tariffs and deepens concerns over trade negotiations going forward. That together with a soft product trade lead to softer Class III markets are the average from now through the end of the year drop 7 cents to finish at $16.13.  September milk closed up a penny at $16.12. October down 15 cents at $16.11. November down six cents at $16.25. December down eight cents at $16.04. January through next August contracts closed four cents lower to a penny higher. The 2019 calendar average dropped another penny to $16.10. Class IV market saw support from the higher butter trade that led the average from now through the end of the year four cents higher to $14.98.

It was a quiet day in the CME spot trade where collectively only six loads moved between seller and buyer across all five products combined. Butter was half of that volume rising 2 and a half cents to finish at $2.26. Grade A nonfat accounted for two loads, dropping a half a cent and finishing at 87 cents. Barrels claimed the final load, it finished unchanged at $1.42 while blocks were also unchanged at $1.60 and a half. Although they did not trade. That was true also of whey, it remained unchanged as well and finishes at 52 and a quarter. 

 

Milk Prices Predicted To Take A Hit Milk futures, cash dairy mostly lower

At the Chicago Mercantile Exchange class III milk futures  closed lower Thursday with strong international production and weaker cash prices weighing on the market. Class III milk markets were even in the September contract, down 18 cents in October and 8 cents lower in November and December, respectively. The 2019 prices were 5-7 cents softer in most months. Class IV milk markets had September even on the day while the 4thquarter settled even to down 10 cents. The 2019 prices fell as well. 

CME spot product markets had butter 3 and three-quarter cents higher at $2.23 and a half cents per lb. Five trades were made along with 8 bids. Cheddar blocks fell a penny to $1.62 per lb. while barrels softened 1 and a half cents to $1.47 per lb. Grade A nonfat dry milk declined a half cent to 87 and a quarter per lb. and dry whey was unchanged at 52 and a quarter following 1 trade and 1 uncovered bid. 

Cheese Rebounds as Milk Futures are Flat in Chicago

At the Chicago Mercantile Exchange, class III milk futures closed Wednesday relatively flat range despite a positive supply and demand forecast for milk prices. The average of Class III milk from now through the end of the year fell a penny to $16.21 while the average for Class IV for the balance of 2018 fell 26 cents to finish at $14.90. Grade A nonfat dry milk did the same falling 2 and a quarter-cent to finish at 87 and three-quarter cents.

Turning our attention back to the dairy product trade, block cheese rose a half a cent to finish at $1.63 while barrels rose 3 cents to return to $1.48 and a half. Whey prices rose another quarter-cent to set a new record at 52 and a quarter-cent while butter fell 2 and three-quarters to complete the trade at $2.19 and three-quarters. 

 

 

Milk Futures Fall Tuesday in Chicago

At the Chicago Mercantile Exchange Tuesday, milk futures were down sharply and cash dairy prices were mostly down.  Class III prices now average $16.23 for the balance of the year, 26 cents lower than the Monday finish. The first half of 2019 dropped 13 cents to an average price of $15.99 while the whole calendar year of 2019 fell 9 cents to $16.18 cents per cwt. Lower butter prices pressured Class IV as well it’s average for the balance of the year fell 14 cents to $15.08. While the 2019 calendar fell 3 cents to match the Class III average of $16.18 per cwt.

Butter caught up in the spirit of the cheese action, it felt three and a quarter-cent to $2.22 and a half after three trades took place. Yet again, the strength in the product trade was found in whey which moved another half-cent higher. It did not trade but now finishes at 52 cents a pound right next to it. Grade A nonfat dry milk held its ground at 90 cents. It did not trade either. Blocks fell 4 and a half cents, without a single load trading. It moves back to $1.62 and a half, a price not witnessed since the 22nd of August. Barrels traded a single load and fell 6 and a half cents. It too returns to a price not seen since early last month. 

 

Milk Futures Up Double Digits in Chicago

At the Chicago Mercantile Exchange, class III milk futures closed mostly higher Monday following Friday’s optimism.   Fourth quarter prices, we’re up double digits while 2019 was up 2-8 cents. Class IV markets were up slightly as well.

Spot product markets on Monday had butter up to 2 ¾ cents to $2. 2575 following six trades and four bids. Cheddar barrels moved 2 cents higher to $1. 52 per pound, while blocks added another ¾ of a cent to $1. 67 per pound. Dry whey was unchanged at 51.5 cents. Grade A nonfat dry milk lost a penny and closed at 90 cents per pound.

 

Class III Prices Crashing in Chicago Thursday

At the Chicago Mercantile Exchange class III milk futures closed sharply lower Thursday pressured by technical selling, increased cheese production and a lack of progress on changes to Canada’s supply management system. Class III markets bled hard as September declined 26 cents to $16.29 per cwt. while the fourth quarter was down 23-39 cents per cwt. The 2019 prices dropped 2-13 cents as well.  Class IV milk fared a little better as prices fell 5-12 cents September through November 2018. Both May and November 2019 softened 7 cents while December was down 9 cents. 

Barrels moved 10 loads and fell 8 and ¼ cents despite only 1 trade. Cheddar blocks settled at $1.64 per lb. The remaining products held themselves together much better.  Butter add ¼ cent after 9 trades and 8 unfilled bids. Butter ended up at $2.19 per lb. Grade A nonfat dry milk closed unchanged at 92 cents per lb. while dry whey gained a half cent following a single bid.  Cheese markets on Thursday found a wall of selling that pushed both cheese and milk prices much lower.

Global Dairy Trade prices at their lowest since October 2016

Dairy prices at the Global Dairy Trade (GDT) auction dipped 0.7pc overall this week.

Overall prices have now fallen in six out of the last seven auctions, and now are at their lowest since October 2016.

Whole milk powder (WMP) and butter prices led the decline, dipping 2.2pc and 2.8pc, respectively. The WMP price fall was also a touch weaker than the fall signalled by the futures market ahead of the auction.

However, other products fared better. Cheddar and casein led the gains, lifting 4.2pc and 3.7pc, respectively.

Skim milk powder also posted a 2.2pc rise, while anhydrous milk fat and butter milk powder were largely unchanged.

Accoording to Nathan Penny Rural Economist with New Zealand bank ASB the modest overall decline fits with the price weakness normally seen at this time of the year.

“NZ production will peak next month, and the extra availability of NZ product usually dampens prices through the spring.

Looking beyond seasonal factors, he said global dairy markets appear largely balanced.

“NZ production is set to lift this season, albeit moderately – we expect a 2pc lift this season compared to last.

“However, dry weather offshore means exports from other producers are likely to be more scarce than usual over coming months.

“Meanwhile, global demand is mixed, but overall remains relatively positive,” he said.

IFA National Dairy Committee Chairman Tom Phelan said co-ops had taken fright earlier this summer and been overly conservative in just holding base prices, some making do with temporary “support” payments which could readily be whipped out.

Kerry’s Eamonn Scanlon and Glanbia’s Siobhan Talbot have recently expressed confidence in the market place, borne out by the latest European quotes, despite recent negative GDT auctions .

This must lead to higher milk prices from August supplies, he said.

“I think it is important to put GDT auctions in context. The USDA predicts that over 7.5m tonnes of dairy products will be traded globally in the year ending December 2018. The quantities traded through GDT in 2017 were less than 10% of that,” Mr Phelan said.

“Latest European market trends show drought has moderated volumes from June and helped the prices of most commodities rally this month. All co-ops, especially those whose base prices have been allowed fall behind, must increase their August base price and be ready to increase it further before year-end as markets allow,” he said.

 

Source: Farm Ireland

Class III Milk Up and Cash Dairy Flat at CME

At the Chicago Mercantile Exchange Wednesday milk futures were mostly up and the cash dairy markets were flat. September gained 3 cents to $16.55 per cwt. October Class III milk average stands at $16.65 per cwt. The 2019 prices traded even to 10 cents higher depending on the month.  The first half of 2019 is offering $16.22 per cwt. Class IV markets saw September lose 11 cents, October 9 and November was down a penny. December 2018 through February 2019 closed even while March to December 2019 jumped 8-28 cents per cwt. 

Not much product changed hands on the cash dairy market. CME spot product markets resulted in butter losing 1 and ¾ cents per lb. to $2.18 and ¾ cents. Grade A nonfat dry milk gained 2 and ¾ cents Wednesday to 92 cents per lb. while dry whey added a half cent to 50 and ½ cents per lb. No changes in blocks or barrels were seen. Blocks ended at $1.70 and ½ cents while barrels closed at $1.64, respectively.  Nonfat dry milk was up $.0275 at $.92 per pound.  Six carloads sold from $.91 to $.92.

CWT Assists with 10.4 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted 15 offers of export assistance from CWT that helped them capture contracts to sell 1.98 million pounds (896 metric tons) of Cheddar cheese, 317,466 pounds (144 metric tons) of butter and 8.10 million pounds (3,670 metric tons) of whole milk powder. The product has been contracted for delivery in Asia, the Middle East and Oceania for the period from September 2018 through March 2019.

CWT-assisted export sales for 2018 total 48.68 million pounds of American-type cheeses, 12.96 million pounds of butter (82% milkfat) and 41.44 million pounds of whole milk powder to 34 countries on five continents. These sales are the equivalent of 1.04 billion pounds of milk on a milkfat basis. Totals have been adjusted to reflect bid cancellations.

This activity reflects CWT management implementing the strategic plan approved by the CWT Committee in March. These changes enhance the effectiveness of the program and member export opportunities.

Assisting CWT members through this export assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

Dairy prices fall at latest GDT auction

Dairy product prices fell at the Global Dairy Trade auction, led by unexpected slides in whole milk powder and butter.

The GDT price index slipped 0.7 percent from the previous auction two weeks ago. The average price was US$2,980 a tonne, compared with US$3,044 a tonne two weeks ago.

Some 38,811 tonnes of product was sold, up from 32,041 tonnes two weeks ago.

Whole milk powder fell 2.2 percent to US$2,821 a tonne.

“There was a greater volume of whole milk powder sold at this event,” AgriHQ dairy analyst Amy Castleton said in a note, adding that it marked a 33 percent increase from the August 21 event and 29 percent climb from the year-earlier event on September 5, 2017.

At the latest GDT auction, butter dropped 2.8 percent to US$4,271 a tonne.

“Butter prices again saw the largest fall,” according to Castleton. “Oceania butter prices are currently the lowest globally, so the market had been anticipating that they would find some support.”

Lactose slipped 0.5 percent to US$917 a tonne.

Meanwhile, butter milk powder rose 0.1 percent to US$2,474 a tonne, while anhydrous milk fat rose 0.2 percent to US$5,316 a tonne.

Skim milk powder rose 2.2 percent to US$2,005 a tonne, while rennet casein rose 3.7 percent to US$5,326 a tonne, and cheddar climbed 4.2 percent to US$3,631 a tonne.

For sweet whey powder, neither an index nor price was available.

The New Zealand dollar last traded at 65.53 US cents as of 2.54pm in New York, compared with 66.01 US cents at the previous close in Wellington.

There were 126 winning bidders out of 178 participating at the 19-round auction. The number of registered bidders was 541, up from 534 at the previous auction.

“There were the same number of winning bidders at this event as at the previous event, though the auction did stretch out to 2 hours and 43 minutes,” Castleton noted, adding that the previous event took one hour and 57 minutes. “There was likely some increased competition for some commodities.”

Source: nzherald.co.nz

Milk Futures Mostly Higher Despite GDT Results

At the Chicago Mercantile Exchange class III milk futures closed mostly higher Tuesday supported by an active cash session. The Class III price average for the balance of the year advanced another 3 cents to $16.63.  

The global dairy trade did its best to derail the positive tone that has defined markets in the past couple of weeks.  The index of products covering the GDT auction fell seven-tenths of a percent but this did little to sway the CME spot trade where blocks rose a penny to $1.70 and a half. That stands as the single highest price witnessed since November 2017. Barrel cheese fell half a cent to $1.64 but in robust volume, 23 loads moved from seller to buyer. 

Futures Lower, Cash Dairy Higher in Chicago as Dairy Markets Grow Weary From NAFTA Talks

At the Chicago Mercantile Exchange Class III milk futures closed lower Thursday as traders eroded away gains made earlier in the week. Class III markets slid 4 cents in their average for 2019 to settle at $16.16 cents, while the balance of this year slid 5 cents to finish at an average price of $16.45 cents per cwt. Class IV markets were only slightly stronger, rising a penny to an average price for 2019 of $16.6 per cwt.

A closer look at the CME spot trade had butter prices unchanged, with no trades tendered it again finishes at $2.27 and a quarter. Blocks and barrels, each grew a penny. Blocks did not trade, however they finish at $1.67 and three quarters while barrels did in fact trade eight loads and they finish at $1.62.  Dry whey was up $0.0025 at $0.4925. Nonfat dry milk was $0.0075 higher at $0.8825. One trade was made at that price.

For August 2018, the USDA says the Class II milk price was $15.07 per hundredweight, down $0.16 from July, the Class III price was $14.95, $0.85 higher, and Class IV was $14.63, an increase of $0.49.

CWT Assists with 2.5 Million Pounds of Cheese, Butter and Whole Milk Powder Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted nine offers of export assistance from CWT that helped them capture contracts to sell 557,770 pounds (253 metric tons) of Cheddar and Monterey Jack cheese, 119,050 pounds (54 metric tons) of butter, and 1.819 million pounds (825 metric tons) of whole milk powder. The product has been contracted for delivery in Asia, the Middle East, and Oceania for the period from August through February 2019.

CWT-assisted member cooperative 2018 export sales total 46.701 million pounds of American-type cheeses, 12.645 million pounds of butter (82% milkfat) and 33.349 million pounds of whole milk powder to 31 countries on five continents. These sales are the equivalent of 959.000 million pounds of milk on a milkfat basis. Totals have been adjusted to reflect bid cancellations.

This activity reflects CWT management implementing the strategic plan approved by the CWT Committee in March. The changes are enhancing the effectiveness of the program and member export opportunities.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

 

Markets Mixed in Chicago Wednesday

At the Chicago Mercantile Exchange Class III milk futures closed mixed after USDA confirmed a case of atypical BSE in a cow in Florida and lowered the all milk price for July. The Class II price was announced for the month of August at $15.07, while the Class III announcement came out at $14.95 and Class IV prices were announced at $14.63. On the board, futures prices for Class III milk rose another penny in the 2019 average to finish at $16.21 while Class IV stayed unchanged at $16.05. 

A look at product in the CME spot saw butter drop 2 and three-quarter cents on two trades to finish at $2.27 and a quarter. Blocks and barrels both remained unchanged after no trades were tendered. They finish out at $1.66 and three-quarters and $1.61 respectively. Grade A nonfat dry milk dropped a quarter cent on seven loads while whey moved another half cent higher to another new record of 49 cents but without trading and load.

Continued Trade Optimism Drive Dairy Markets Higher in Chicago

At the Chicago Mercantile Exchange class III milk futures closed mostly higher Tuesday supported by continued optimism following the U.S. and Mexico trade deal and strong cash markets. In the last four trading sessions the month of October, for example, has risen 66 cents. The average for the last four months of the year now stands at $16.51 cents, 15 cents higher than Monday.  Despite the positive tone in nearby contracts, the calendar has taken an opposite direction. That price now sits at $16.20, just a penny shy of Monday’s finish. The average for Class IV milk now stands at $16.03 for the 2019 calendar, up just a penny from Monday.

A look at the CME spot trade revealed some optimism as well. Block cheese rose a penny and a half, however, it did not trade. It settles at $1.66 and three-quarters. Barrels remained unchanged but had the highest volume of the spot session with seven loads moving from seller to buyer. It again finishes at $1.61. Butter rose a half a cent after four loads traded hands. Its final price was $2.30 cents. Grade A nonfat dry milk traded a handful of loads, rose three quarters of a cent and finishes at 87 and three-quarters. Dry way rose to yet again another record final prices 48 and a half cents after a half cent climb. It did not trade.

Trade Deal Sparks Trade at CME

On Monday, the White House announced a preliminary deal between Mexico and the United States.  Despite very little released on dairy, Class III milk futures at the Chicago Mercantile Exchange closed higher Monday. Class III 2019 prices ranged anywhere from even to 8 cents higher. Class IV milk markets gained 3-7 cents September through December. CME spot product markets had butter 3 and ½ cents higher at $2.29 and ½ cents following 6 trades and 2 bids. Cheddar barrels moved a penny higher to $1.61 per lb. with 4 loads moving. Blocks also traded 4 times but declined 1 and ¾ cents to $1.65 and ¼ cents. Both Grade A nonfat dry milk and dry whey settled unchanged Monday. Nonfat dry milk closed at 87 cents and dry whey at 48 cents per lb. 

 

Milk Futures Up, Cash Dairy Mixed in Chicago

At the Chicago Mercantile Exchange, Class III milk futures closed higher Thursday supported by bullish market expectations the dairy herd is shrinking.  Class III milk futures bounced 22-30 cents per cwt. higher on Thursday September through December. The average on the last 4 months now stands at $16.16 per cwt.  First quarter 2019 traded 17-19 cents higher while the 2ndhalf of 2019 ascended 1-5 cents as well. The 1sthalf of 2019 closed Thursday at $15.93 per cwt. while the full year is at $16.15 per cwt. Class IV markets had small volume and finished mainly unchanged. 

Cheddar blocks added 1 and ¼ cents to $1.65 after 2 trades. Barrels gained a penny to $1.57 and ½ cents.  Grade A nonfat dry milk declined 1 and ¼ cents to 86 and ¼ cents per lb.  Butter closed down $0.0025 at $2.2475.  Five trades were made ranging from $2.2325 to $2.25. Dry whey was up two cents at $0.47.

Mixed Results in Dairy Markets at CME

At the Chicago Mercantile Exchange Class III milk futures closed mixed Wednesday.  Class III milk futures were a penny lower in August at $15.00 even. September moved 4 cents higher while the 4thquarter weakened 3-9 cents. The price for 2019 had February down a penny and the last half up 2-7 cents per cwt. The Class IV market was 2 cents lower in August at $14.68 per cwt. and down 14-16 cent in September through December. January fell 3 cents and August 2019 through December 2019 declined 4-15 cents per cwt. 

Butter came in at 318 million pounds. Beef supplies were 485 million, up 12% year over year at 8% ahead of the prior month. CME spot product markets on Wednesday had blocks up 2 cents following 3 trades to $1.63 and ¾ cents per lb. Barrels softened a half cent to $1.56 and ½ cents after 1 trade. Butter markets added 1 and ¼ cents and settled at $2.25 per lb. 

CWT Assists with 533,519 Pounds of Cheese, Butter, Whole Milk Powder Export Sales

Member cooperatives with Cooperatives Working Together (CWT) accepted five offers of export assistance from the program that helped capture contracts to sell 101,413 pounds (46 metric tons) of Cheddar and Monterey Jack cheeses, 220,462 pounds (100 metric tons) of butter, and 211,644 pounds (96 metric tons) of whole milk powder. The product has been contracted for delivery in Asia, South America and the Middle East from August-December 2018.

CWT-assisted 2018 export sales total 46.14 million pounds of American-type cheeses, 12.53 million pounds of butter (82% milkfat) and 31.96 million pounds of whole milk powder to 29 countries on five continents. These sales are the equivalent of 941 million pounds of milk on a milkfat basis.

This activity reflects CWT management implementing the strategic plan approved by the CWT Committee in March. The changes will enhance the effectiveness of the program and facilitate member export opportunities.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, thus expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This, in turn, positively affects all U.S. dairy farmers by strengthening and maintaining the value of dairy products that directly impact their milk price.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT will pay export assistance to the bidders only when export and delivery of the product is verified by the submission of the required documentation.

 

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