Market News

Dairy markets rebound

Despite the big drop on Monday, dairy markets recovered quite nicely by the end of the week on the Chicago Mercantile Exchange. On Friday barrels slipped 1.25 cents, blocks gained a quarter-cent, butter increased 4 cents and nonfat dry milk was a quarter-cent higher. Class III futures were mixed.

Compared to a week ago, cash cheese barrels gained 3.75 cents, blocks added a nickel, butter is 3.5 cents higher and nonfat dry milk lost 1.25 cents. August Class III gained 13 cents, September increased 24 cents, October was 12 cents higher and January lost 3 cents.

Seasonal declines in milk production and components leading to tighter milk supplies in the Midwest and West. The decline is even greater in the Southeast where it has been hot. Florida imported 20 loads this week. Butter demand remains strong but churning rates have slowed as cream supplies have tightened up.

The national weighted average advertised price for a half gallon of organic milk is $3.42 while a half gallon of conventional is $2.18 putting the organic-to-conventional spread at $1.24.

Total organic milk product sales in May was 195 million pounds down 7.4 percent from May of 2014. January – through – May total organic milk product sales are 1.9 percent below the same period in 2014.  Sales of organic whole milk are above a year ago.