In Class III trade at the Chicago Mercantile Exchange, milk futures were higher on follow through buying and short covering. April was up $.05 at $13.81, May was $.08 higher at $13.78, June was up $.13 at $14.01, and July was $.21 higher at $14.41.
Over in the spot market, cash cheese was firm to higher. Barrels were up $.02 at $1.435. The last bid unfilled was on one load at that price. Blocks were $.0075 at $1.425. There were two loads sold, one at the closing price and one at $1.4175. The last bid unfilled was on one load at $1.425.
Butter was down $.10 at $2.07 with four loads sold. The last bid unfilled was on one load at $2.07. The last offer uncovered was for two loads at $2.08.
Nonfat dry milk was $.0075 higher at $.705. The last bid unfilled was for one load at that price. The last offer uncovered was for one load at $.72.
The USDA has increased its 2016 U.S. milk production estimate and tightened the expected price range. Production is seen at 211.8 billion pounds, up 200 million on the month due at least in part to increased production per cow.
The expected price ranges for all types of milk along with cheese, butter, and nonfat dry milk were lowered because of the large available supplies. All milk is now estimated at $15 to $15.50 per hundredweight, including Class III at $13.65 to $14.15 and Class IV at $12.90 to $13.50. Cheese is seen at $1.51 to $1.56 per pound and butter is pegged at $2.005 to $2.085. Nonfat dry milk is estimated at $.76 to $.80 per pound with dry whey holding at $.23 to $.26.
Milk production numbers for March are out on the 20th.
Source: Brownfield Ag News
