Market News

Milk futures higher, cash dairy mixed

Milk futures on the Chicago Mercantile Exchange closed the week higher as the cash market continues to show strength.

January class III milk futures closed up a penny at $14.07.  February up four cents at $14.49.  March up a dime at $15.06.  April up nine cents at $15.51.  May through September contracts were five to nine cents higher.

Dry whey up $0.0075 at $0.4950 cents. 

Blocks up $0.02 at $1.41.  Four trades were made at $1.39 and $1.41.

Barrels down $0.0025 at $1.2450.  Eleven trades were made at $1.2225.

Butter up $0.0225 at $2.2575.  Five trades were made ranging from $2.2450 to $2.2575.

Nonfat dry milk up $0.0050 at $1.03.  One trade was made at that price.

The USDA says cash dairy prices ended the week higher for all product categories except blocks and barrels.  In the weekly dairy recap, the agency says butter makers are working to increase inventories for spring with strong seasonal demand.  National cheese inventories are heavy, demand is good, but barrel markets are struggling.  Fluid milk production is growing but contracts in several regions suggest long-term production increases could be limited with more distressed farms continuing to exit the business.  Nonfat dry milk inventories are tight and prices are increasing.