Cheese Production Up Across The Board
The USDA released their November Dairy Products report on Monday. Milk continues to flow into butter production, though we have slowed down. The US produced 156 million lbs of butter in November, this was 4.4% higher than November of 2018, but was 6/10 of a percent lower than October.
Cheese production across the board was better than 2018, but slowed from October levels. Total cheese was 1.1 billion lbs up ½ a percentage point from 2018 but 3.2% lower than the previous month. Italian style was 474 million lbs of that – 1% higher than November 2018, but 2.4% below October.
American style cheese was 1.2 million lbs, production was only slightly above 2018 levels, and was down 6/10 of a percent off of October production. Non Fat Dry Milk pulled 5.7% more milk over November 2018. Dry Whey production was 75.1 Million lbs, up 3.9% from 2018, but lactose production was 90.2 Million, down 12.5 percent from 2018 levels.
The CME spot trade was relatively quiet. Butter was our biggest mover, falling 5 ½ cents to 1.89 ½, Cheddar blocks were 1 cent lower to 1.88/lb, barrels unchanged at 1.64 ¼. Dry whey was the largest volume with 12 loads trading but unchanged at $0.31 ½/lb. Non Fat Dry Milk was unchanged at $1.23 1/4/lb.
Class III milk gained 4 cents in Jan to 16.97, Feb fell a penny to 17.01, and March fell 1 to 17.24/cwt. Class IV milk saw a bigger swing. January fell 17 to 16.79, Feb fell 15 to 17.03, and March fell 8 to 17.28/cwt.