Milk Markets Remain Softer Following USDA Dairy Products Report
The milk markets were softer all day on Friday following the USDA’s Dairy Products report that came out on Thursday afternoon for the month of August. Total cheese output for August 2019 was 1.11 billion, 2.2% above a year ago and 1.6% more than last month. Italian and American style cheese produced during August were reported at 457 and 458 million pounds, respectively. Butter production ended up at 136 million pounds, 2.1% above last year but 4.3% below July’s production. Dry milk and whey products also outpaced last year’s numbers.
CME spot product watched cheddar blocks trade 2.75 cents lower to $1.99 ¼ following a single trade. Barrels added 2 cents to $1.79 per lb on 2 trades. The block to barrel spread is now at 20.25 cents. Butter was unchanged at $2.185 per lb. with 2 uncovered offers left hanging in the market. Grade A nonfat dry milk grew a penny to $1.14 ½ on 3 trades, 3 uncovered bids and 3 offers. Dry whey fell 1.25 cents Friday after another massive volume of trade. 15 loads moved from seller to buyer while 80 traded for the week in dry whey.
Class III milk prices lost 17 to 33 cents for the 4th quarter of 2019. That average settled at $17.91 per cwt for the week. January and February 2020 were down hard as well Friday, losing 19 and 14 cents, respectively. March through June fell 3 to 7 cents as