National Dairy Product Sales Report Give Prices A Boost
On Wednesday afternoon, the USDA released the national dairy product sales report, or NDPSR for short. This report captures the sales made by processors in terms of total pounds and price and reports a weighted average for the previous week sales every Wednesday afternoon.
In the previous week of sales, the average butter price was reported at $2.36 and a half cents, while block cheese was reported at $1.62 and three-quarters cents and just shy of 11.9 million pounds. Barrel cheese was a little softer at $1.59 after being adjusted to 38% moisture. That price average representing 12.6 million pounds of sales. Whey prices came in at 37.7 cents while nonfat dry milk registered just over 82 cents.
These prices were an improvement over the previous week but did little to change the outcome of the August milk price announcements which were also made on Wednesday afternoon. Using these very same numbers from the NDPSR, USDA extrapolates values for butter, fat, protein and other solids, to then reverse engineer a milk price for the four different classes of milk.
The Class II price was announced for the month of August at $15.07, while the Class III announcement came out at $14.95 and Class IV prices were announced at $14.63. On the board, futures prices for Class III milk rose another penny in the 2019 average to finish at $16.21 while Class IV stayed unchanged at $16.05.
A look at product in the CME spot saw butter drop 2 and three-quarter cents on two trades to finish at $2.27 and a quarter. Blocks and barrels both remained unchanged after no trades were tendered. They finish out at $1.66 and three-quarters and $1.61 respectively. Grade A nonfat dry milk dropped a quarter cent on seven loads while whey moved another half cent higher to another new record of 49 cents but without trading and load.