Market News

Milk futures mixed, cash cheese steady

In Class III trade at the Chicago Mercantile Exchange, milk futures were mixed, mostly higher, ahead of the long holiday weekend. February was down $.01 at $13.87 and March was up $.05 at $14.06, April was $.05 higher at $14.11 and May was up $.03 at $14.19.

In the spot market, cash cheese was unchanged. Barrels were steady at $1.48. Blocks held at $1.49 with the last bid unfilled on three loads at that price.

Butter was $.02 lower at $2.11. There were six loads sold, including five at the closing price.

Grade A nonfat dry milk was down $.0225 at $.7375. There were seven loads sold, five at $.75 and two at $.7375. The last bid unfilled was on one load at $.735.

Cash and futures trade Monday will be closed for Presidents’ Day.

For the week ending February 12th, the USDA reports butter production is seasonally strong with readily available cream supplies and a number of processors close to capacity. Retail interest is increasing, but food service requests are steady to lower.

Cheese production is reportedly active on the East and West, steady in the Central region. In the Eastern region, cheese sales are good with building supplies, but in central areas, packaging demand is slower and inventories are increasing. Western cheese demand is reported as mostly steady.

Farm level milk production is said to vary around the U.S., with steady to increasing volume in the Central region. Demand for Class II products are good and ice cream manufacturers are getting ready for summer.

Prices for low/medium heat nonfat dry milk were mixed, maybe a little weaker, with light demand. Dry whey prices are steady to higher, with good domestic demand and questionable global demand.

Conventional dairy ads were down 6% on the week while organic ads dropped 20%.