Milk Prices Continue Fall
On Thursday the USDA released their cold storage report. Natural cheese stocks in refrigerated warehouses throughout the U.S. on January 31 totaled 1.275 billion pounds, up 7% year over year but down slightly from last month. Butter stocks grew 1% from a year ago and jumped 33% from the December report. Butter stocks came in just shy of 224 million pounds. Red frozen meat increased 9% from December to 1.1 billion pounds.
The bearish milk production report released on Wednesday drug Class III milk prices lower throughout Thursday. February dropped 2 cents to $13.44 per cwt. March through May fell 26-30 cents while June onward closed 6 to 15 cents lower. March through June is now offering $14.17 per cwt and the full year average is at $15.11 per cwt. The first quarter of 2019 traded but results were unchanged. Class IV milk markets saw 15 trades hit at $14.65 per cwt, all other months were quiet and unchanged.
CME product markets softened. Butter fell 3 cents with five trades and nine offers. Blocks declined 2 1/2 cents to $1.52 1/2 per pound. Barrels did trade a half cent higher to $1.49 per pound, tightening the block to barrel spread to 3 1/2 cents. Grade A nonfat dry milk weakened 1 1/4 cents to 67 1/4 cents per pound.