In Class III trade at the Chicago Mercantile Exchange, milk futures were mostly higher on spread trade and weather uncertainties. July was down $.01 at $15.33, August was up $.05 at $16.46, September was $.03 higher at $16.49, and October was up $.11 at $16.52.
Over in the spot market, cash cheese was higher. Blocks were up $.01 at $1.66 with one trade reported. The last bid unfilled was on one load at $1.6575. The last offer uncovered was for one load at $1.67. Barrels were $.01 higher at $1.745. There were a total of eight trades, one at the closing price and six at $1.7375. The last offer uncovered was for one load at $1.75.
Butter was up $.0175 at $2.32. There were three trades, two at $2.31 and one at $2.32. The last bid unfilled was on two loads at $2.305.
Nonfat dry milk was steady at $.875 with two loads sold.
The USDA reports that for the week ending July 15th, U.S. butter production was steady to lower, adding substantial volumes of cream are headed to ice cream production, so there’s less cream for butter churning. Some Central region manufacturers are microfixing bulk butter to meet customer needs with demand called firm.
Cheese production is active and inventories are rising. The USDA says some market participants are reporting better demand for processed cheese because of grilling season. Some Central region participants report improving interest for a number of different types of cheese.
Fluid milk production is declining in the East and Central regions, along with New Mexico. Production has plateaued in Arizona, California, and the Pacific Northwest, but is increasing in Colorado, Idaho, and Utah. Condensed skim volumes are moving to ice cream and nonfat dry milk processing facilities. Cream supplies are tighter and demand from ice cream and frozen dessert makers is called strong.
At the retail level, conventional dairy ad numbers were down 2% and organic ads were up 52%. The spread between organic and conventional half gallons of milk was $2.05, compared to $1.57 the previous week. For butter, the organic/conventional spread is $1.77.
Source: Brownfield Ag News
