Class III milk futures at the Chicago Mercantile Exchange were mostly higher following the new USDA supply and demand report. The USDA raised its 2017 production guess, but also increased some demand categories and 2017 prices are expected to be above 2016. February was unchanged at $16.85, March was $.03 higher at $16.97, April was up $.11 at $17.13, and May was $.07 higher at $17.22.
Cash cheese blocks were unchanged at $1.62. There were a total of eight loads sold, six at $1.60, one at $1.61, and one at $1.62. The last unfilled bid was on three loads at $1.60. The last uncovered offer was for one load at $1.63. Barrels were down $.015 at $1.65. There were five loads sold at $1.65. The last unfilled bid was on one load, also at $1.65. The last uncovered offer was for one load at $1.66.
Butter held at $2.1775. The last uncovered offer was for one load at $2.18.
Nonfat dry milk was up $.0025 at $.9625. There were ten loads sold, nine at $.96 and one at $.9625. The last unfilled bid was on one load at $.96. The last uncovered offer was for one load at $.9625.
The USDA has raised its 2017 milk production outlook by 300 million pounds to 217.4 billion. On the fat basis, marketings were also up 300 million pounds to 216.4 billion and imports were lowered 400 million pounds to 6.6 billion. Commercial fat basis exports were left at 8.3 billion pounds and ending stocks are expected to be 14.3 billion pounds, up 1.1 billion from January. On the skim-solid basis, marketings were also up 300 million pounds at 216.4 billion and imports held at 6.2 billion pounds. Commercial skim-solid exports were lowered 100 million pounds to 40.1 billion and ending stocks were raised 1.1 billion pounds to 14 billion.
For 2017, the all milk price is projected at $17.70 to $18.40 per hundredweight, compared to $17.60 to $18.40 in January and the 2016 estimate of $16.24. Class III is seen at $16.45 to $17.15, compared to $16.35 to $17.15 last month and $14.87 last year. Class IV is estimated at $15.10 to $15.90, compared to $15.25 to $16.15 a month ago and $13.77 a year ago.
The 2017 price of cheese is now expected to be between $1.66 and $1.73 per pound, compared to 2016’s estimate of $1.605. Butter is projected at $2.045 to $2.145, compared to $2.0777 last year. Nonfat dry milk is estimated at $.99 to $1.05, compared to $.8292 a year ago. Dry whey is seen at $.455 to $.485, compared to $.2875 in 2016.
Source: Brownfield Ag News
