Cheese Production Drops in the Last 30 Days
Wednesday’s market news brought with it the February USDA Dairy Products report. Total cheese output in February was 991 million lbs. This was half a percentage point above Feb 2018 production, but a drop of 9.7% from January’s production. We saw a similar drop in most categories. Italian type cheese was down 8.3% from January though production was higher than Feb 2018.
Butter production total 394 million lbs in February. Falling 12.9% below January production levels and 2.9% below February 2018 production
Nonfat Dry milk for human production was down 2.6% from February 2018, and Skim milk powder fell 4.8% off a year ago’s production. Dry whey fell 16.4%. Lactose was the lone product to see an increase in production. It rose 14.5% from February 2018 production levels.
The CME spot product trade showed mixed results. Butter rose ¼ of a cent to $2.25 ¼ on zero trades. Cheddar blocks gained a penny on 3 trades but Barrel fell 3 cents on 7 loads changing hands. Clocks finishing the day at $1.66/lb and Barrels at $1.57.
Grade a Non Fat Dry milk failed to trade any loads and finished the day unchanged at $0.97 1/2/lb. Dry Whey was up 1 ¼ cent to finish the day at $0.34 1/2/lb.
Class III milk nearby rose early, and fell after the products trade. To finish the day down 5 cent in April to $15.80 and down 3 cents in May to $15.67. Class IV fell in the nearby months and gained 2-10 cents during the second half. May Class IV ended at $16.11 and June at 16.41.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.