Skim Milk More Than Doubles to 48.7 Million Pounds
The USDA released its monthly dairy products report on Thursday. Cheese output for the month of September totaled 1.06 billion pounds, up 3.1% compared to September 2017 but 2% lower than the previous month. Butter production was reported at a steady 134 million pounds, down .1% year over year and .3% above August 2018.
Nonfat dry milk production fell 21% compared to September 2017 while skim milk powder jumped 67% to 48.7 million pounds. Whey output fell 22% to 71.3 million while lactose came in at 87.9 million pounds, down 7.4%.
Dairy spot product markets saw cheddar barrels lose some of the momentum that was built the previous couple of days falling 3 and ½ cents after 7 loads moved from seller to buyer. Barrels closed at $1.34 per lb. Blocks had 1 trade and 1 uncovered bid which added a quarter cent to the ending price of $1.45 and 3/4 cents.
Butter was unchanged at $2.30 per lb. Grade A nonfat dry milk closed at an even 90 cent per lb. up ¾ of a cent Friday. Dry whey lost another quarter cent following 6 trades and settled out at 44 and ½ cents per lb.
Class III milk futures were 10 cents lower in November and down 3 cents in December, respectively. January-December 2019 ranged from even in January to 6 cents higher. Class IV saw limited changes.