Market News

Base milk prices drift lower

Cash cheese blocks lost a nickel, barrels and nonfat dry milk were unchanged while butter increased another 6 cents on the Chicago Mercantile Exchange on Wednesday. 2015 Class III futures were a little lower while contracts for the first half of 2016 were a little higher.

Base milk prices for August production: Class II is $14.54 per hundredweight down 16 cents from July. Class III base is $16.27 down 6 cents from the previous month. Class IV base is $12.90 down 25 cents from July. *The Class IV base price has lost $1 since June.

Component prices per pound for August; butterfat $2.2674; protein $2.5692; nonfat solids $0.5707; other solids $0.1151

A reflection of what is happening in the dairy markets; this is the highest butterfat price since last October thanks to the strong butter price while these are the lowest solids and Class IV prices of the year due to the plunge in powder prices. The Class IV base has lost $1.00 since June.

 

National Dairy Products Sales Report for the week ending August 29th; cheddar cheese blocks averaged $1.74 per pound up 0.9 cents, barrels slipped 1.2 cents to average $1.74. Butter increased 19.9 cents to $2.22 per pound, nonfat dry milk increased 0.9 cents to 74.5 cents per pound and dry whey decreased 2.5 cents to average 27.5 cents per pound.

Milk production is slowing in the Midwest as the current hot weather and bottling demand are reducing intakes at cheese plants. Spot loads of milk are bringing $1 to $2 over Class. Dairy Market News reports demand for cheese for retail remains strong.

 

  • Are the milk producers dumping milk…..I thought that the Gov. bought all the milk and dried it and then stored it….? How much dried milk is exported and where….? Thank you.

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