In Class III trade at the Chicago Mercantile Exchange, milk futures were mostly higher in technical activity. November was unchanged at $16.72, December was down $.01 at $16.72, January was up $.06 at $16.43, and February was $.11 higher at $16.34.
Cash cheese was lower. Barrels were down $.02 at $1.655. There were a total of seven loads sold, including one at $1.655 and four at $1.67. The last uncovered offer was for one load at $1.67. Blocks were $.065 lower at $1.78. There were six loads sold, including two at $1.78 and two at $1.82.
Butter held at $2.10. The last uncovered offer was for one load at $2.13.
Nonfat dry milk was unchanged at $.92. There were four loads sold, three at $.92 and one at $.91. The last unfilled bid was on one load at $.915. The last uncovered offer was for one load at $.9275.
Tuesday, the USDA’s Office of the Chief Economist released a preview of February’s long term agricultural projections through 2026. The USDA is projecting a steady increase in domestic milk production on higher milk cow numbers and improving average yields per cow. Demand is general is also expected to increase over the next decade, supporting milk prices. Except for butter, the USDA says dairy product prices will move higher. The USDA does note there are a number of assumptions in making decade long projections, including weather, international uncertainties, policy, economics, and a number of other unforeseen issues.
Source: Brownfield Ag News
