In Class III trade at the Chicago Mercantile Exchange, milk futures were lower on follow through selling tied to the continued bearish supply and demand outlook, starting May a lot like they finished April. May was down $.14 at $13.03, June was $.27 lower at $12.99, July was down $.20 at $13.31, and August was $.17 lower at $13.99.
Over in the spot market, cash cheese was lower. Barrels were down $.0125 at $1.40. There were a total of five loads sold, including one at the closing price. The last offer uncovered was for one load at $1.4125. Blocks were $.01 lower at $1.36. The last bid unfilled was for two loads at that price.
Butter was down $.06 at $2.06 with one load sold. The last offer uncovered was for one load at $2.075.
Nonfat dry milk was $.0075 lower at $.7475. There were two loads sold, including one at the closing price. The last bid unfilled was on two loads at $.7425. The last offer uncovered was for one load at $.7525.
For the week ending April 29th, the USDA says butter processing is ongoing thanks to heavy cream volumes and inventories are steady to building. In the Central region, demand for bulk butter is steady for educational institutions and food service, but print butter demand from retailers is moving lower.
Cheese production is heavy, because of the plentiful milk supply. Midwestern producers report steady to moderate increases in orders and increasing inventories. Responding to the start of grilling season, American and cheddar cheese demand is rising, while pizza type cheese demand should start declining. The Western region notes good demand from food service and retail, which could help trim inventories.
Fluid milk production is higher with the spring flush close to peak. Bottling demand is steady in the Midwest. Condensed skim and cream demand from ice cream manufacturers is rising.
Last week, total conventional dairy ads were down 2%, but organic ads were up 92%. Both organic and conventional 32 ounce containers of yogurt jumped more than 200%. The most heavily advertised items were reported 48 to 64 ounce containers of conventional ice cream and 4 to 6 ounce containers of conventional Greek yogurt. The price spread for a half gallon of conventional and organic milk is $2.66.
Source: Brownfield Ag News
