Dairy Product Prices Find Footing on Wednesday
Dairy prices on Wednesday were stronger throughout the day. Class III milk prices rallied and settled around 10-23 cents lower June through Sept. Class IV markets ended the day mixed.
CME spot products put together another strong showing. Butter markets added 3 cents to $1.63 ½ per lb. Cheddar blocks and barrels added 7 cents in each market. Blocks ended at $1.92 per lb. despite no trades. Barrels settled at $1.85 ¼ per lb. following 8 trades. Grade A nonfat dry milk gained a penny to 99.5. Whey closed unchanged at 36 ¼ per lb.
USDA released its monthly milk production report on Wednesday. Milk production was reported at 18.7 billion pounds, up 1.4% in April year over year. March production was revised 115 million pounds higher as well, pushing March to 2.8% year over year growth. March cow numbers were revised 5,000 head higher. After the revision, April cow numbers were lowered 4,000 head. This milk production report is analyzed as price negative to the market.