Market News

Cash cheese hits multi-year lows

In Class III trade at the Chicago Mercantile Exchange, milk futures were mostly higher on spread trade and oversold signals. May was the exception, down $.06 at $12.87, May was up $.10 at $13.01, July was $.18 higher at $13.33, and August was up $.15 at $13.92.

Over in the spot market, cash cheese was lower, hitting the lowest levels since March 2010. Barrels were down $.03 at $1.315 with four loads sold. The last offer uncovered was for one load at $1.315. Blocks were $.02 lower at $1.305 with a total of four loads sold. The last bid unfilled was on one load at $1.305. The last offer uncovered was for one load at $1.31.

Butter was two cents higher at $2.05 with one load sold. The last bid unfilled was on one load at $2.04.

Nonfat dry milk was up $.02 at $.775 with six loads sold. The last bid unfilled was on one load at $.77. The last offer uncovered was for five loads at $.78.

U.S. cheese production during March 2016 was 1.029 billion pounds, up 1.8% from March 2015. U.S. milk production is running ahead of the USDA’s projection, much of which is going into dairy product production. Italian type cheese came out at 459.050 million pounds, 4.3% higher, with American type cheese at 399.380 million pounds, up 0.9%. Butter production was 181.992 million pounds, 8.6% higher. Dry milk powders were reported at 172 million pounds, a decrease of 5.1%, and skim milk powders were 40.6 million pounds, up 2.8%. Dry whey totaled 83 million pounds, down 4.5%, lactose, for human and animal consumption, at 95.6 million pounds, was up 2.9%, and whey protein concentrate at 38.3 million pounds was 9.1% lower. Hard, regular ice cream came out at 70.5 million gallons, down 1.8%, with lowfat at 41 million gallons, up 7.5%.