In Class III at the Chicago Mercantile Exchange, coming back from Presidents’ Day weekend, milk futures were lower, following the lead of the Global Dairy Trade auction, pressured by the global supply and demand uncertainties. February was $.03 lower at $13.84 and March was down $.16 at $13.90, April was $.20 lower at $13.91 and May was down $.09 at $14.10.
Over in the spot market, cash cheese barrels were down $.02 at $1.46, with four loads sold. The last offer uncovered was for one load at $1.47. Blocks were unchanged at $1.49. The last bid unfilled was on one load at $1.48 and the last offer uncovered was for one load at $1.49.
Butter was $.06 lower at $2.05. There eight loads sold, including five at the closing price.
Grade A nonfat dry milk was up $.02 at $.7575. There were two loads sold, one at $.74 and one at $.75. The last bid unfilled was on one load at the closing price.
The Global Dairy Trade index was down 2.8% this week to $2,235 per ton. That’s the fourth consecutive auction with a decline, with 22,021 tons sold. Anhydrous milk fat was up 1.5% and lactose was unchanged. All other categories were lower, including an 11.5% drop on rennet casein.
The USDA’s Economic Research Service has lowered its 2016 all milk price estimate, citing lower exports. The price is now projected at $15.30 to $16 per hundredweight, compared to January’s range of $15.35 to $16.15. Class III is seen at $14.05 to $14.75 and Class IV is pegged at $13 to $13.80. Commercial milk exports are estimated at 8.3 billion pounds on the milkfat basis and 37.0 billion pounds on the skim solid basis.
The 2016 price range for cheddar cheese is $1.55 to $1.62 per pound and butter is projected at $1.99 to $2.09. The price range for dry whey is seen at $.23 to $.26 with nonfat dry milk at $.775 to $.835.
Source: Brownfield AgNews
