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Milk futures, cash cheese lower

Futures Markets copy

In Class III trade at the Chicago Mercantile Exchange, milk futures had another round of pressure from expanding U.S. production projections and bearish technical momentum. October was down $.14 at $15.20, November $.14 lower at $15.43, December was down $.17 at $15.27, and January was $.17 lower at $15.16.

Cash cheese was lower. Blocks were down $.01 at $1.535. There were a total of seven loads sold, one at the closing price. The last uncovered offer was for one load at $1.54. Barrels were $.02 lower at $1.46. There were ten loads sold, two at $1.46. The last uncovered offer was for one load, also at $1.46.

Butter was down $.04 at $1.935. The last uncovered offer was for one load at that price.

Nonfat dry milk was up $.0075 at $.9525 with one load sold. The last unfilled bid was on one load at $.93. The last uncovered offer was for one load at $.97.

The CME Group announced that starting in December, spot dairy markets will begin transitioning from open outcry to CME Direct Auction Platform. The first commodity to make the move will be nonfat dry milk with butter and cheese expected to start trading on that platform in the first quarter of 2017.

Cooperatives Working Together made two new announcements of cheese export assistance. The first was for 19 requests from unnamed member coops on 3.702 million pounds of Cheddar, Gouda, and Monterey Jack cheeses to Asia with delivery for September through December of this year. The second was on 13 requests from DFA, Darigold, and the Tillamook County Creamery Association for 2.288 million pounds of Cheddar and Monterey Jack to Asia, Central America, the Middle East, North Africa, and Oceania, also for delivery from September through December.

According to HighGround Dairy, dairy exports by New Zealand during August were mostly down on the month and the year. Nearly all sectors are ahead of last year’s pace, including a big year to year jump for infant formula with strong demand reported for Australia, China, and Hong Kong. Milk powder exports from New Zealand hit a seven year low.

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