Higher Production And Storage, Lower Cow Numbers And Prices
After releasing their September Milk Production Report with adjustments to cow numbers looking back to June on Friday, the USDA followed up with their Cold Storage Report on Monday.
Total natural cheese in refrigerated warehouses on September 30thequaled 1.366 billion pounds. This was 4% ahead of year ago levels and 1% over the August numbers. Butter stocks totaled 283 million, 11% more than last year but 3% lower than August.
Total beef accounted for 508 million, a gain of 3% compared to September 2017 and 1% more than last month. Over the past 5 years, butter inventories have dropped on average 30 million pounds between August and September. This year’s reduction of 7.8 million pounds and addition of 7.8 million in cheese, for a time period that normally declines, suggest week demand.
Milk prices fell once again Monday. October lost 2 cents while October and November were down 11 and 9 cents respectively. The 2019 prices ranged from 9 cents lower to 4 cents higher in Class III. Class IV had mixed results ranging from 7 cents lower to 8 cents higher in 2018 and 2019. CME spot products markets continued their grind lower.
Cheddar blocks sod off another 2 and three-quarter cents to $1.24 per lb. following 7 trades. The lows of $1.20 and a half put in on June 25thand 26thare now within reach. Blocks added three-quarters of a cent to $1.50 and a half. Butter weakened 4 and a half cents to $2.21 and a half. Grade A nonfat dry milk fell a quarter cent while dry whey dripped 5 cents to 52 and a half per lb.