Markets React to Dairy Products Report
On Wednesday, the USDA released its monthly dairy products report. This report shows the production of butter, cheese, milk powder and whey products.
For February, total cheese output tallied 942 million pounds. That is 1.4% below a year ago and 9.9% below last month. Butter production totaled 164 million pounds, a figure that fell 5.8 % from February 2016 and 7.6% from last month. Milk powder saw 140 million pounds produced on nonfat dry milk, while skim milk powders tallied 40 million pounds. Dry whey production came in at 78 million pounds, up 3.4% from last year.
While production in February 2017 was lower than a year ago, we must remember that 2016 was a leap year and had an extra day for production.
The CME spot dairy trade saw losses on Thursday. Block cheese dropped 2₵ on one offer to settle at $1.48 per pound. Barrel cheese fell 2.25₵ to $1.435 per pound on 10 trades. Butter declined 2.5₵ on one offer and settled at $2.12 per pound. Grade A nonfat dry milk was unchanged at 80₵.
Class III futures prices watched the market fall 18₵-30₵ in the 2nd and 3rd quarters. While the 4th quarter was down 8₵-20₵. Class IV saw the May-July months trade down 16₵-19₵.