August 19, 2019

Cheddar Block Prices Highest In Nearly Three Years

 |  By: Know Your Market

The USDA released the July Milk Production report on Monday. Monthly Milk production for the 24 major milk producing states was up 0.1% from July 2018 at 17.5 billion lbs. Production per cow for July came in at 1,969 lbs, 17 lbs higher than July 2018. Total cow herd is at 9.3million head, down 82,000 head from 2018 and 9000 head less than June 2019.

Class III milk continued a lackluster performance as grains fell. August was unchanged at $17.62, September fell 7 cents to $17.78, and October fell 5 to $17.78. The Aug – December average is at $17.52/cwt. 2020 markets were also weaker, falling 5-9 cents for Jan- March and averaging $16.49/cwt.

The CME spot product trade was mixed. Butter fell 1 cent to $2.33/lb with two trades. Cheddar blocks gained 2 ¾ cents with two trades and finished the day at $1.90 3/4 , a new high we haven’t touched since November of 2016. Cheddar Barrels however fell 1 ½ cents to $1.75/lb  with 8 loads trading hands. 

Grade A Non Fat Dry milk was unchanged and saw one load move at $1.03/lb. Dry whey gained half a cent to $0.37/lb.

Grain and feed  markets fell again on Monday. December corn fell 6 ¼ to $3.74 ½, November soybeans fell 13 ¼ to $8.66 ½, and Soybean meal fell $2.90 to $292/ton.