Cheese, Butter Production Up Over Last Year
The January 2018 Dairy Products Report was released by the USDA on Thursday. Total cheese output was 1.08 billion pounds, 3.4% ahead of January 2017 but 1% behind December 2017. Butter production came in at 185 million pounds, up 4.3% from January 2017 and 9% above last month's number. Nonfat dry milk climbed 5.4% to 162 million pounds while skim milk powder dropped 17.2% to 45.8 million pounds. Dry whey production jumped 8.5% to 89.3 million pounds.
CME spot product markets showed very little change on Thursday. Blocks and nonfat dry milk closed unchanged while butter and barrels added a quarter cent. Blocks settled at $1.53, barrels $1.47 1/4, butter $2.18 and grade A nonfat dry milk came in at 67 1/4 cents per pound.
Class III milk futures added 2 cents to $14.04 per cwt. April through August declined 6 to 11 cents with September and October unchanged and November and December 3 cents lower. Class IV milk fell 11 to 26 cents March through July and September while August fell 4 cents to $14.42 per cwt.