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