Market News

Milk futures, cash cheese higher

Class III milk futures at the Chicago Mercantile Exchange were supported by follow through buying and improving demand expectations. October was up $.16 at $16.33, November was $.39 higher at $16.64, December was up $.40 at $16.49, and January was $.39 higher at $16.20.

Cash cheese blocks were $.0575 higher at $1.67. Two loads were sold, one at $1.67 and one at $1.65. The last unfilled bid was on one load at $1.655. Barrels were up $.0725 at $1.6725. Four loads were sold, including two at $1.65. The last unfilled bid was on one load at $1.6725.

Butter was $.03 lower at $2.4175. Six loads were sold, including two at $2.42. The last unfilled bid was on one load at $2.40. The last uncovered offer was for one load at $2.4175.

Nonfat dry milk was $.0075 higher at $.83. One load was sold at $.83. The last unfilled bid was on one load at $.82. The last uncovered offer was for one load at $.83.

New Zealand’s Fonterra Co-operative Group says 2016/17 total cash payouts were up 52% from 2015/16, with a 12% increase in revenue. Earnings before taxes were down 15% and the net profit after tax was 11% lower. HighGround Dairy says Fonterra’s report also noted solid consumer and food service growth, advanced ingredient sales were up 9% and the group return on capital increased by 11.1%. Fonterra expects higher payouts in 2017/18.

Cooperatives Working Together announced the acceptance of nine requests for export assistance, covering 1.296 million pounds of Cheddar and Monterey Jack cheeses and 385,809 pounds of butter. The products are headed to Asia, the Middle East, North Africa, and Oceania with delivery slated for September through December 2017.