In Class III trade at the Chicago Mercantile Exchange, milk futures were up, following the USDA’s new supply and demand estimates. USDA raised 2016 and 2017 production estimates, but is expecting generally strong demand. January was up $.05 at $16.79, February was $.01 higher at $17.34, March was up $.15 at $17.63, and April was $.12 higher at $17.70.
Cash cheese blocks were up $.015 at $1.75. There was one load sold at $1.75. Barrels were unchanged at $1.64. The last uncovered offer was for two loads at $1.68.
Butter was down $.0325 at $2.245. There were a total of seven loads sold, ranging from $2.17 to $2.245.
Nonfat dry milk was $.0025 higher at $1.0325. There was one load sold at $1.0325.
2016 milk production came out at 212.5 billion pounds, up 100 million on the month. Export estimates for the fat and skim basis were both higher and imports were left unchanged. The estimated 2016 all milk price is $16.20 per hundredweight, compared to $16.05 to $16.15 in December. Class III is now projected at $14.87 with Class IV at $13.77. 2017 million production is now seen at 217.1 billion pounds, up 300 million. Fat basis exports were down from December, but skim basis exports were up modestly and imports were steady. The estimated 2017 all milk price is $17.60 to $18.40, compared to December’s range of $16.85 to $17.65. The Class III price is seen at $16.35 to $17.15 and Class IV is pegged at $15.25 to $16.15.
For 2016, the USDA has the average cheese price at $1.605 per pound, with butter at $2.0777, nonfat dry milk at $.8292, and dry whey at $.2875. The USDA raised the 2017 price outlooks on good demand expectations. Cheese is expected to range from $1.675 to $1.755, with butter at $2.095 to $2.205, nonfat dry milk at $.99 to $1.05, and dry whey at $.415 to $.445.
California’s Department of Food and Agriculture reports nonfat dry milk for the week ending January 6th averaged $.9884, up $.0203 on the week. Sales of 7,130,717 pounds were 3,659,117 higher.
Source: Brownfield Ag News
