Market News

Cheese market bounces around

The barrel-to-block spread narrowed to just 3.75 cents on the Chicago Mercantile Exchange on Tuesday.  Barrels gained 6.25 cents and blocks slipped a half-cent. There were 16 loads sold, 13 barrels and 3 blocks.  Class III futures took a dive; December lost 19 cents, January plunged 33 cents and February fell 24 cents.

USDA Economic Research Service says net farm income will drop 38 percent this year compared to 2014. The largest single-year decline since 1983.  Crop receipts are down 9 percent due mainly to lower prices and livestock receipts are down 12 percent with dairy and hogs the main reason for that drop.  The ERS says after reaching a record $49.3 billion in 2014, milk receipts are projected to drop 28.2 percent in 2015 as declining prices more than offset an increase in production.  The latest Livestock, Dairy and Poultry Outlook has the Class III price at $15 to $15.30, Class IV at $15.55 to $15.95 and the all milk price at $17.50 to $17.80.  The all milk price for 2014 was a record $23.97 while the 2013 all milk price was $20.05.