November 5, 2019

Rallying Milk Prices Ignore September Dairy Products Report

 |  By: Know Your Market

The USDA released the September Dairy Products report on Tuesday. Total cheese output came in at 1.08 billion lbs., up 2.1% year over year but 2.7% beneath last month. American type cheese production added up to 418 million pounds, 1.4% beneath last year and 9% below August. Italian cheese produced ended up at 469 million pounds. Butter also made year over year gain as production was up 1.2% to 137 million pounds. Nonfat dry milk production was 123 million pounds, skim milk powder at 48.8 and dry whey totaled 92 million pounds. 

CME spot cheddar barrels picked up this week right where they left off. Barrels added another 3.5 cents per lb. to $2.375 following a single uncovered bid. Blocks fell a quarter cent and ended at $2.1575 per lb. with 6 loads moving from seller to buyer. Butter was unchanged at $2.0625 with 4 uncovered offers left hanging in the market. Grade A nonfat dry milk added a quarter cent to $1.1925. Dry whey softened another quarter cent to 27 ¾ per lb. with 8 trades taking place. 

Class III milk markets were higher again on Tuesday. November added 8 cents to $20.27 per cwt, December was up 4 and first half 2020 ranged from 2 lower to 5 higher. Class IV milk was stronger as well, ranging from 2 to 13 cents higher.