April 3, 2019

Cheese Production Drops in the Last 30 Days

 |  By: Know Your Market

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.