Market News

A wild week in the dairy markets

The end of a pretty crazy week in the dairy markets on Friday. Cash cheese barrels increased 3.75 cents on the Chicago Mercantile Exchange, blocks were 3.5 cents higher, butter dropped 20 cents and nonfat dry milk held steady. Class III futures were mixed as well.

For the week, cash cheese barrels increased 6.75 cents, blocks increased 15.75 cents, butter lost 63.5 cents and nonfat dry milk gained 12 cents per pound. Class III futures for October are 19 cents higher, November lost 14 cents and December slipped 7 cents.

A lot of uncertainty in the butter market, the big price drop has some concerned about holding any amount of inventory. Although demand is still strong and production is still running below year-ago levels.

Base milk price for Class III milk for September is $15.82 down 45 cents from August and $8.78 below September of 2014. The Class II base is $15.36 up 82 cents from a month ago but $10.75 below a year ago. The Class IV base for September is $15.08 up $2.18 from August but $7.50 below a year ago.

Component prices per pound for September: butterfat $2.7531; protein $1.9801; nonfat solids $0.6266; other solids $0.0465.