U.S. cheese stocks at the end of July were at record levels because of high production rates and slow export demand. The USDA started collecting cold storage data in 1917. Cheese stocks at 1.276 billion pounds were up 10% on the year, including a 10% increase in American cheese to 769.982 million and a 19% jump in Swiss to 25.705 million pounds. Butter stocks were 333.123 million pounds, 31% above a year ago, also on high production levels and slow export demand.
The U.S. Dairy Export Council says that as of June, U.S. cheese exports are down 20% on the year and butter sales are 1% lower.
The USDA says U.S. cheese and butter production for 2016 are both ahead of the respective 2015 paces.
In class three trade at the Chicago Mercantile Exchange, milk futures were pretty narrowly mixed on demand uncertainties and spread trade. August was up $.01 at $16.96, September was down $.06 at $17.82, October was $.03 lower at $17.55, and November was $.03 higher at $17.10.
Cash cheese blocks were down $.005 at $1.86. There were two trades at $1.865. The last uncovered offer was for one load at $1.86. Barrels were unchanged at $1.865.
Butter was $.06 lower at $2.13. There were two trades, one at the closing price and one at $2.15. The last unfilled bid was on one load at $2.09. The last uncovered offer was for one load at $2.13.
Nonfat dry milk was down $.005 at $.8525. There were a total of four trades, two at the closing price. The last unfilled bid was on one load at $.8375. The last uncovered offer was for two loads at $.8525.
California’s Department of Food and Agriculture says nonfat dry milk for the week ending August 12th averaged $.8525 per pound, up a half a cent on the week, with sales of 7 million pounds.
Source: Brownfield Ag News
