In Class III trade at the Chicago Mercantile Exchange, milk was lower on profit taking after Thursday’s sharply higher, outside finish which had a new contract low followed by a higher close. June was down $.09 at $12.85, July was $.14 lower at $13.15, August was down $.09 at $13.85, and September was $.12 lower at $14.56.
Over in the spot market, cash cheese barrels were up $.01 at $1.44. There were a total of 12 loads sold, including five at the closing price. Blocks were unchanged at $1.38 with two loads sold.
Butter was steady at $2.065 with one load sold. The last offer uncovered was for four loads at $2.0875.
Nonfat dry milk was $.015 higher at $.795. A total of five loads were sold, two at the closing price. The last bid unfilled was on one load at $.78. The last offer uncovered was for one load at $.7975.
The USDA says butter manufacturing was active all across the U.S. with moderate to heavy cream volumes and bulk pricing seeing a seasonal increase. However, the USDA does note FOB prices are still above $2. Central processors reportedly already have their eye on third and fourth quarter demand.
Cheese vats are full with manufacturers at or near full schedules. Sales are called strong, but a few Midwestern suppliers are seeing slower demand outside of already contracted sales. There’s plenty of cheese available and talk of rising export demand.
Fluid milk productions varies, depending on weather and region. The Central is still at peak flush and farm level output is called strong.
The price spread between conventional and organic half gallons of milk is $2.00.
Source: Brownfield Ag News
