At the Chicago Mercantile Exchange class III milk futures continued to slide Tuesday pressured by increasing milk production and Event 224 of the Global Dairy Trade. November closed eight cents lower at $14.47. December down 20 cents at $14.46. 2019 Class III markets also fell 1 to 25 cents from January to November leaving the first half average at $15.15 and the second half average at $16.28. January 25 cents lower at $14.56. February down 23 cents at $14.76. March through next October contracts closed 17 cents to a penny lower.

The CME spot market was also lower on Tuesday. Butter fell 2 3/4 cents to $2.30 1/4 per pound. Blocks fell 7 cents at $1.34 cents per pound. Barrels fell 4 3/4 cents to $1.25 per pound. Grade A nonfat dry milk rose 1/4 cent to 88 3/4 cents. And lastly dried whey fell 1 cent to 42 cents.

Fonterra is forecasting a payout between $6.25 and $6.50 a kilo of milk solids. Photo: RNZ / Rebekah Parsons-King

Current dairy prices for farmers are unlikely to last, according to analysts.

Fonterra is predicting a final price of between $6.25 and $6.50, when the season wraps up next year.

That is a reduction from earlier forecasts.

But it might still be too high, according to Mark Lister, who heads private wealth research for Craigs Investment Partners.

He said there was an increasing pressure on the industry, mainly due to weaker dairy prices around the world.

“We’ve seen slippage in the global dairy trade auction results,” he said.

“That’s partly due to more supply [of dairy products] coming on line from many parts of the world.

“Secondly, the New Zealand dollar has been very strong.”

Figures put the New Zealand dollar lower than it was earlier this year but still 4 cents up on its level of early October when measured against the US dollar.

That higher dollar made New Zealand exports more expensive for people overseas to buy.

Mr Lister said those two factors would make it harder for Fonterra to sustain its latest predictions.

He was not making a formal declaration but thought $6 would be a realistic figure.

“This might be lower than people have come to expect over the past six months but is still not too bad relative to history.”

Another analyst, Mark Brunel of OMF, produced a still lower forecast of $5.80.

He noted the volume of production worldwide would put downward pressure on prices, with output from the New Zealand industry up 6 percent and US production up 1 percent in the year to date.

Source: RNZ

At the Chicago Mercantile Exchange class III milk futures lower Monday as milk production increases slightly in the U.S. November closed three cents lower at $14.55. December down 18 cents at $14.66. 2019 Class III markets saw losses anywhere from 9 to 23 cents in January to June, leaving the first half average at $15.29.  January 23 cents lower at $14.81. February down 15 cents at $14.99. March through next October contracts closed 13 cents lower to a penny higher. The second half of 2019 was mainly unchanged but rose 3 cents in July and one cent in October, leaving the second half average at $16.32.

Blocks closed $0.0425 lower at $1.41. Four trades were made ranging from $1.41 to $1.44. Barrels were down $0.0625 at $1.2975. Dry whey closed unchanged at $0.43 Butter was up $0.0550 at $2.33. Three trades were made ranging from $2.3075 to $2.33. Nonfat dry milk was unchanged at $0.8850. Two sales were made at $0.88 and $0.8850.

At the Chicago Mercantile Exchange class III milk futures closed mixed in a narrow range despite an active cash session. Class III markets were down 1 cent in November at $14.56 and 2 cents in December at $14.88. 2019 Class III markets ran between losing 1 cent to gaining 2 cents across the board. January a penny lower at $15.10. February up a penny at $15.18. March through next October contracts closed one to three cents higher. Class IV markets were mixed as well. November fell 7 cents to $15.02 while December rose 13 cents to $15.05 in 2018. 2019 Class IV markets realized gains from 4 to 14 cents across the board.

The CME spot market trade on Thursday was in the green as all five products traded. Barrels were unchanged at $1.36. Six trades were made at that price. Blocks closed $0.0250 higher at $1.4250. Ten trades were made ranging from $1.3975 to $1.4250. Butter was up $0.0350 at $2.2750. Seven trades were made ranging from $2.26 to $2.28. Nonfat dry milk was up $0.01 at $0.88. Ten trades were made ranging from $0.87 to $0.88. Dry whey closed up $0.0050 at $0.4350. Fourteen trades were ranging from $0.4350 to $0.4475.

At the Chicago Mercantile Exchange, Class III milk futures closed again higher Wednesday supported by the cash market.  November and December 2018 were up 9 cents respectively. November closed four cents higher at $14.57. December up nine cents at $14.90.  2019 months ranged from even to six cents higher. The average first half 2019 Class III price Is $15.45 and the full year closed at $15.89/cwt. January a nickel higher at $15.11. February up four cents at $15.17. March through next October contracts closed two to six cents higher.

Barrels were up $0.0050 at $1.36. Three trades were made ranging from $1.3550 to $1.36. Blocks closed $0.0275 higher at $1.40. Five trades were made ranging from $1.3975 to $1.41. Butter was up $0.0250 at $2.24. Four trades were made ranging from $2.2225 to $2.24. Nonfat dry milk was up $0.0075 at $0.87. Two trades were made at that price. Dry whey closed up $0.0050 at $0.43. Two trades were made at $0.42 and $0.43.

Cooperatives Working Together (CWT) member cooperatives accepted 20 offers of export assistance from CWT that helped them capture contracts to sell 2.048 million pounds (638 metric tons) of Cheddar and Monterey Jack cheese, 606,271 pounds (275 metric tons) of butter and 879,645 pounds (399 metric tons) of whole milk powder. The product is contracted for delivery in Asia, Central America, the Middle East, North Africa, Oceania and South America for the period from November 2018 through April 2019.

CWT-assisted member cooperative 2018 export sales total 53.777 million pounds of American-type cheeses, 13.842 million pounds of butter (82% milkfat) and 52.823 million pounds of whole milk powder to 36 countries on five continents. These sales are the equivalent of 1.2 billion pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This 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.

At the Chicago Mercantile Exchange, Class III milk futures continued their positive movement through Tuesday’s trade. November rose 2 cents at $14.53, while December Rose 15 cents at $14.81. 2019 Class III markets rose anywhere from 5 to 16 cents with the most moving in the first quarter. The 2019 first quarter average is now at $15.16. January 16 cents higher at $15.06. February up 14 cents at $15.13. March through next October contracts closed five to 11 cents higher.

Barrels were up $0.0375 at $1.3550. Two trades were made, one at $1.33 and one at $1.34. Blocks closed $0.0225 higher at $1.3725. Four trades were made ranging from $1.36 to $1.3850. Butter was down $0.0250 at $2.20. Six trades were made ranging from $2.1975 to $2.23. Nonfat dry milk was up $0.0025 at $0.8625. Dry whey closed down $0.0050 at $0.4250. Five trades were made ranging from $0.4250 to $0.4275.

At the Chicago Mercantile Exchange Class III milk futures worked their way higher Monday taking back some of last week’s losses.  Since early October, the first half 2019 average has slipped 85 cents. Monday the market was able to achieve modest gains. November added 5 cents while December jumped 19. January traded 14 cents higher and February was up 10 cents. March and beyond in Class III ranged from 5 to 11 cents higher. 

Barrels were up $0.0125 at $1.3175. Blocks closed $0.03 lower at $1.35. Five trades were made ranging from $1.35 to $38. Butter was up $0.0325 at $2.2250. One trade was made at that price. Nonfat dry milk was unchanged at $0.86. One trade was made at $0.8575. Dry whey closed down $0.0050 at $0.43. Eight trades were made ranging from $0.43 to $0.4350.

At the Chicago Mercantile Exchange Class III milk futures traded another day lower after a mostly bearish supply and demand report and lower cash trade. Class III markets were softer on Thursday falling 3 cents in November and 18 cents in December.  November closed three cents lower at $14.43. December down 18 cents at $14.48. 2019 markets were also down on the day, losing 3 to 6 cents from January to September. January six cents lower at $14.72. February down six cents at $14.86. March through next October contracts closed unchanged to seven cents lower.

The CME spot markets on Thursday were mainly lower. Butter lost 1 ¾ cents at $2.1925 per pound. Blocks fell 3.5 cents to $1.39 per pound, trading 7 times. Barrels were unchanged in today’s session at $1.305 per pound. With the most volume of the session Grade A nonfat dry milk fell 1.25 cents to 85 ¾ cents, trading 11 times. Dry whey lost ¾ of a cent to 43 ¾ cents.

At the Chicago Mercantile Exchange Class III milk futures again continued lower Wednesday following the elections and lower cash trade.  November closed six cents lower at $14.46. December down 17 cents at $14.66. The 2019 Class III prices also fell 5 to 12 cents across the board.  January 12 cents lower at $14.78. February down a dime at $14.92. March through next October contracts closed four to eight cents lower. Class IV prices fell 10 cents for both November and December of 2018. The 2019 Class IV prices loosed 3-9 cents in January to March while the remaining of 2019 realized gains of 8 to 17 cents. 

The CME spot market continued to soften as well. Butter fell 3 cents after 5 trades to $2.21 per lb. Blocks fell 3 and ¼ cents at $1.42 and 1.2 cents per lb., also trading 5 times. Barrels also lost 3 cents at $1.30 and ½ cents per lb., only trading 3 times.  Grade A nonfat dry milk only traded 1 time loosing 1 and ½ cents at 87 cents. Dry whey was the only product that didn’t trade, leaving it unchanged at 44 and ½ cents.

At the Chicago Mercantile Exchange Class III milk futures continued to slide Tuesday on dismal trade reports and limited cash movement. November closed 18 cents lower at $14.52. December down 22 cents at $14.83. January 20 cents lower at $14.20. February down 18 cents $15.02. March through next October contracts closed three to 11 cents lower.

The only bright spot was skim milk powder (SMP), up 1.2% to 91¢/lb. Cheddar cheese declined 4.6% to $1.47/lb. Whole milk powder (WMP) was off 2.9% to $1.20/lb, and butter dropped 1.7% to $1.84/lb.

At the Chicago Mercantile Exchange Class III milk futures started the week lower following the tone of the cash market. November closed eight cents lower at $14.70. December down 13 cents at $15.05. January through May declined 3 to 8 cents. January eight cents lower at $15.10. February down four cents $15.20. March through next October contracts closed six cents lower to unchanged. Well a June onward was unchanged Class IV markets had November a penny higher and December five cents lower. 2019 ranged between 8 and 14 cents weaker.

Barrels were unchanged at $1.34. Blocks were unchanged at $1.4575. Butter was down $0.0125 at $2.2875. Nonfat dry milk was $0.0125 lower at $0.8875. One trade was made at that price. Dry whey closed $0.0025 higher at $0.4475. Five trades were made ranging from $0.4450 to $0.4575.

Cooperatives Working Together (CWT) member cooperatives accepted eight offers of export assistance from CWT that helped them capture contracts to sell 1.448 million pounds (657 metric tons) of Cheddar cheese, contracted for delivery in Asia, the Middle East and North Africa for the period from November 2018 through March 2019.

CWT-assisted member cooperative 2018 export sales total 49.719 million pounds of American-type cheeses, 12.962 million pounds of butter (82% milkfat) and 52.188 million pounds of whole milk powder to 36 countries on five continents. These sales are the equivalent of 1.132 billion pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This 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.

At the Chicago Mercantile Exchange Class III milk futures closed higher Thursday following improved Chinese imports and USDA’s mostly bearish dairy product report. November added 4 cents and December jumped 26 cents.  January through July 2019 traded 8-13 higher and August through December ranged from a penny lower to 5 cents higher.  January four cents higher at $15.19. February was three cents higher at $15.24. March through next October contracts closed unchanged to three cents higher.

Barrels were up $0.0450 at $1.3750. Five trades were made at that price. Blocks were down $0.02 at $1.4550. Eight trades were made ranging from $1.44 to $1.4550. Butter was $0.02 higher at $2.30. Eight trades were made ranging from $2.28 to $2.30. Nonfat dry milk was $0.0125 higher at $0.8925. Eight trades were made ranging from $0.89 to $0.8950. Dry whey closed $0.0025 lower at $0.4475. Ten trades were made ranging from $0.44 to $0.4457.

At the Chicago Mercantile Exchange class III milk futures closed higher Wednesday as traders took back over sold positions. October closed unchanged at $15.54. November added 2 cents to $14.79 per cwt. while December closed 12 cents higher at $15.17 per cwt. The 2019 prices rose 10-15 cents in the first quarter while April through August added 2-7 cents per cwt. September was even and the fourth quarter was down 2-6 cents. Class IV milk months wer all higher rising anywhere from 5-13 cents. 

Barrels were up $0.0825 at $1.33. Five trades were made ranging from $1.26 to $1.33. Blocks were down $0.0375 at $1.4750. Five trades were made ranging from $1.4550 to $1.4750. Butter was $0.0550 higher at $2.28. Sixteen trades were made ranging from $2.2725 to $2.2850. Nonfat dry milk was $0.0125 higher at $0.88. Seven trades were made ranging from $0.8450 to $0.8750. Dry whey closed $0.0025 lower at $0.45. One trade was made at that price.

At the Chicago Mercantile Exchange Class III milk futures closed mostly lower Tuesday following a mostly lower tone of the cash market. October closed a penny higher at $15.54.  November dropped 10 cents and December was down 8 cents. 2019 prices ranged from 4-8 cents lower in the first half and 1-6 cents softer in the second half.  November a dime lower at $14.77. December down eight cents at $15.05. January eight cents lower at $15.00. February through next September contracts closed one to eight cents lower. Class IV had November through January even on the day, March up 6 cents, April 4 cents and May-November was down 5 cents. 

CME spot product markets were once again highlighted by the results in the dry whey market. Whey traded 9 times and fell 1 and ¾ cents to 45 and ¼ cents per lb. Grade A nonfat dry milk was unchanged at 86 and ¾ cents despite a very active session. Twelve loads moved while 8 bids and offers were left uncovered.  Butter was also unchanged at $2.22 and a half cents per lb. Neither cheddar blocks or barrels traded Tuesday. Blocks set back a quarter cent and $1.51 and ¼ cents and barrels gained 1 and ½ cents to $1.24 and ¾ cents following a single bid. 

Cooperatives Working Together (CWT) member cooperatives accepted 12 offers of export assistance from CWT that helped them capture contracts to sell 1.407 million pounds (638 metric tons) of Cheddar and Monterey Jack cheese and 264,555 pounds (120 metric tons) of whole milk powder. The product is contracted for delivery in Asia, the Middle East, North Africa, and Oceania for the period from October 2018 through April 2019.

CWT-assisted member cooperative 2018 export sales total 51.125 million pounds of American-type cheeses, 12.962 million pounds of butter (82% milkfat) and 52.452 million pounds of whole milk powder to 36 countries on five continents. These sales are the equivalent of 1.146 billion pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program in the long term helps member cooperatives gain and maintain market share, expanding the demand for U.S. dairy products and the U.S. farm milk that produces them. This 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.

Source: CWT

At the Chicago Mercantile Exchange, class III milk futures started the week lower following the negative tone of last week’s market. By the end of the session, the average price of Class III milk in Q4 dropped 13 cents to a price of $15.16 per cwt. with the month of November now trading below $15 at a price of $14.88, It fell 20 cents. The first half of 2019 calendar average finished a dime lower at $15.45. January 11 cents lower at $15.08. February through next September contracts closed three to 12 cents lower. The Class IV market saw a little activity and finished unchanged.

Barrels were down $0.0175 at $1.2325. Six trades were made ranging from $1.2325 to $1.25. Blocks unchanged at $1.5150. Butter was down $0.0075 at $2.2250. One trade was made at that price. Nonfat dry milk was unchanged at $0.8675. Dry whey unchanged at $0.47.

At the Chicago Mercantile Exchange, class III milk futures were able to take back some earlier week losses Thursday supported by an active cash trade, shrinking cow herd and weakening international prices. After falling $1.45 in the November contract since the beginning of October, milk futures finally found some footing on Thursday following a higher spot product trade. November traded 21 cents higher and settled at $15.11 per cwt. while December was up 28 cents. The 2019 Class III prices had January through April 21-27 cents higher, May up 14 cents, June 12 cents stronger and July to November 2-8 cents higher.  Class IV prices were slightly higher.

Product trade on Thursday saw positive results in 4 of 5 products offered. Dry whey regained a penny and closed at 48 and a half cents per lb. following a couple of bids. Cheddar barrels moved 14 loads and jumped 4 and three-quarter cents per lb. to settle out at $1.25 and a half cents per lb.  Blocks were $0.0275 higher at $1.4975. Five trades were made ranging from $1.4625 to $1.4975. Butter was up $0.0275 at $2.24. Fourteen trades were made ranging from $2.2325 to $2.2475. Nonfat dry milk was down $0.0025 at $0.8675. Two sales were made at $0.8650 and $0.8675.

At the Chicago Mercantile Exchange Class III milk futures continued to slide Wednesday as increasing supplies and slowing demand hangs over the market.  The fourth quarter average of 2018 dropping 14 cents to $15.10.  October closed unchanged at $15.50. November down 20 cents at $14.90. December down 17 cents at $14.95.  The first half of 2019 now finds itself at $15.30 for a price 13 cents lower than Tuesday and nearly 50 cents lower than last week at this time. Class IV market site activity in Wednesday’s session. The balance of 2018 now rest set an average price of $14.86 down 15 cents from Tuesday. The first half of 2019 fell 16 cents to come to a final average of $15.15. January 17 cents lower at $14.91. February through next September contracts closed six to 16 cents lower.

Barrels were down $0.0125 at $1.2075. Fourteen trades were made ranging from $1.2075 to $1.2175. Blocks were $0.0050 lower at $1.47. Five trades were made ranging from $1.4575 to $1.4750. Butter was up $0.0175 at $2.2125. Seven trades were made ranging from $2.20 to $2.2150. Nonfat dry milk remained unchanged at $0.87. One sale was made at that price. Dry whey unchanged at $0.4750. Two trades were made at that price.

At the Chicago Mercantile Exchange Class III milk futures closed lower Tuesday, pressured in part by the cash market, increased supplies and slowing demand. The first half Class III futures price now stands at $15.47 per cwt while the full year is offering $15.90.  October closed three cents lower at $15.50. November down 32 cents at $15.10. December down 30 cents at $15.12. January a quarter lower at $15.08. February through next September contracts closed two to 25 cents lower. Class IV markets weakened 13 cents in November and December 2018. January through August 2019 fell 12 cents and September through December dropped 13 cents. The spot product market fared no better.

Barrels are approaching a 2018 low of $1.2050/lb. which was set in June, the previous low was set in July of 2009. Barrels were down $0.02 Tuesday at $1.22. Eleven trades were made ranging from $1.22 to $1.23. Blocks were $0.03 lower at $1.4750. One trade was made at that price. Butter was down $0.02 at $2.1950. One trade was made at $2.20. Nonfat dry milk closed unchanged at $0.87. Dry whey was down $0.05 at $0.4750 with a record volume traded. Twelve trades were made, ranging from $0.47 to $0.50.

Milk production in the United States during the July – September quarter totaled 54.0 billion pounds, up 0.9 percent from the same period last year.

The average number of milk cows in the U.S. during the quarter was 9.38 million head, 27,000 head less than the April – June quarter, and 27,000 head less than in 2017.

For the month of September, 16.4 billion pounds of milk was produced in the 23 major dairy states, which was 1.5 percent more than in 2017, but lower than the previous month’s 17.2 billion pounds.

California continues to have the highest total production with about 3.21 billion pounds. Texas had the largest increase in year-to-year output as that state produced 1.04 billion pounds of milk in September, up 8.9 percent from the same period last year.

Meanwhile, the number of milk cows on farms in the 23 major states was 8.72 million head, 13,000 head less than September 2017, and 12,000 head less than August 2018.

Source: wisconsinagconnection.com

The U.S. dairy industry would suffer a significant blow on a number of products resulting from a proposed 25 percent tariff imposed on dairy products by China, according to a study.

Dr. Luis Ribera, Texas A&M AgriLife Extension Service economist and director of the Center for North American Studies at Texas A&M University in College Station. (Texas A&M AgriLife photo)

Dr. Luis Ribera, director of the Center for North American Studies at Texas A&M University and Texas A&M AgriLife Extension Service economist, found a number of issues that could hamper U.S. dairy producers.

The study initially examined the impacts on potential retaliatory tariffs on both China and Mexico export dairy markets.

Regarding China, the study examined three potential scenarios: using elasticities to measure the potential losses of the China dairy export market; a 42 percent loss of the China dairy export market as seen in exports data for July and August; or total elimination of the China export market.

“As a 25 percent tariff was imposed, there was a reduction in imports of U.S. dairy products of 42 percent in July and August compared to last year,” he said. “That’s not just economics, but also politics at play here. That makes sense in China since it’s a centralized decision. The interesting part of this is a combination of economics and politics.”

Further, Ribera said they examined the implications if the China market was eliminated for U.S. dairy exports.

“We found that more than 16,000 jobs would be eliminated, and it could cost up to $3.4 billion in annual losses,” he said. “That’s a big hit with regards to money turning over in our own national economy, so the implications of these potential scenarios could carry some big weight.”

He said the bottom line is producers will take a hit regardless of economics or politics. “We won’t be sending as much product oversees, not selling as much, (and) still losing that important market.”

With U.S. midterm elections coming up, much of this has yet to play out, but any of the study’s findings have negative implications on the U.S. dairy market, Ribera said.

The study is available at http://bit.ly/2CWUj1T

At the Chicago Mercantile Exchange Monday the dairy markets were down. October lost 2 cents while October and November were down 11 and 9 cents respectively. The 2019 prices ranged from 9 cents lower to 4 cents higher in Class III. Class IV had mixed results ranging from 7 cents lower to 8 cents higher in 2018 and 2019. CME spot products markets continued their grind lower. 

Dry whey was down $.05 at  $.5250 cents per pound. Eight sales were made from $.52 to $.5625 Forty-pound blocks were up $.0075 at $1.5050 per pound.  Three carloads traded from $1.4850 to $1.5050. Barrels were down $.0275 at $1.24 per pound.  Seven carloads sold from $1.24 to $1.25. Grade AA Butter was down $.0450 at $2.2150 per pound.  Two carloads sold at $2.2150 and $2.22. Nonfat dry milk was down $.0025 at $.87 per pound.  One carload sold at that price.

Latest Price & Chart for Class III Milk

At the Chicago Mercantile Exchange, Class III milk futures closed lower Thursday, pressured in part by the cash market. The lower butter and cheese performance added pressure to the Class III market, which fell 9 cents in the remainder of the 2018 calendar average. That price average now stands at $15.53 that compares to the $16. 56 cent average for the same period on September 10, more than $1 drop in just over a month. October closed a nickel lower at $15.55. November down 11 cents at $15.53. December down a dime at $15.52. The 2019 calendar felt pressure as well. The first half of the year fell 10 cents to come to a final average price for that period of $15.73.  January 15 cents lower at $15.43. February through next September contracts closed 15 cents to a penny lower. Class IV markets remained mostly unchanged. 

Blocks fell 7 cents after four loads traded hands to finish at $1.52, while barrels retreated another 2 and three-quarters cents to end at $1.26 and a half. That marks the lowest price since the week after Fourth of July. Butter got caught up in the downward action, falling 3 and a half cents on 15 loads, the greatest volume of any product in the session. It finishes at $2.25.  Nonfat dry milk closed unchanged at $0.8675. One trade was made at that price. Dry whey unchanged at $0.5750.

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.

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. 

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.

Source: Otago Daily Times

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.

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.

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.

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.

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.

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 4^th 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.

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 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

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. 

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.