Dairy Markets Finish The Week Mixed
The USDA released their monthly Dairy Products Report on Thursday which analyzes the production of cheese, butter, dry milk, and why products. Cheese production for August totaled 1.03 billion pounds, up 2.3% from last year. Butter outpaced las year’s numbers by 6.2% at 131 million pounds, while dry whey grew 24.5% at 95.8 million pounds. Skim milk powder production dropped 1.8% from August 2016 but non-fat dry milk jumped 15.9% to 136 million pounds.
On Friday, CME spot product markets saw strength again in cheese but weakness in butter and nonfat dry milk. Blocks added ¾ of a cent while barrels gained a half cent, both on bids but no trades. On the week, blocks traded3 loads and at an average price of $1.7425, up 3 cents from last week. Barrels averaged $1.72 per pound on 6 loads moving hands. Friday’s trade in butter declined 3.5 cents to $2.34 and Grade A nonfat dry milk weakened a penny to close at 82.5 cents. Butter traded 43 loads this week but dropped 5.25 cents from the week prior while non-fat dry milk moved 33 loads.
Class III milk futures were up 1-6 cents in the October – March months and second quarter 2018 declined 2-4 cents. Second half 2018 was unchanged, 4th quarter 2017 closed the week at $16.54 per CWT. First half 2018 finished at $15.79. Class IV markets were unchanged.