Posted: August 13, 2010 at 12:07 pm
By Chuck
High temperatures and humidity are driving dairy prices higher. School pipelines are refilling and making less milk available for the churn or the vat. The block cheese price closed Friday the 13th at $1.62 per pound, up 1 3/4-cents on the week, and 25 3/4-cents above a year ago. The barrels closed at $1.5850, also up 1 3/4-cents on the week, and 24 1/2-cents above a year ago. Two cars of block traded hands on the week and one of barrel. The NASS-surveyed U.S. average block price hit $1.5834, up 3.7 cents. Barrel averaged $1.5779, up 2.3 cents.
Butter closed Friday at $1.9175, up 6 3/4-cents on the week, 69 3/4-cents above a year ago, and the highest in over five years. Only one car was sold on the week. NASS butter averaged $1.8025, up 3.2 cents. NASS powder averaged $1.1766, up 0.2 cent, and dry whey averaged 35.9 cents, up 0.6 cent.
Provided courtesy of Dairyline.
Posted: August 6, 2010 at 1:54 pm
By Chuck
The blocks closed the first Friday in August at $1.6025 per pound, unchanged on the week but 29 1/4 cents above a year ago. Barrel closed at $1.5675, up a penny on the week, and 27 3/4 cents above a year ago. No cars of block traded hands on the week and six of barrel. The NASS-surveyed U.S. average block price hit $1.5409, up 4.7 cents. Barrel averaged $1.5552, up 4.4 cents.
Butter closed at $1.8500, up 3 1/2 cents on the week, and 62 cents above a year ago. Six cars were sold. NASS butter averaged $1.7701, down 0.1 cent.
Cash Grade A nonfat dry milk closed Friday at $1.2100, unchanged on the week, and Extra Grade closed at $1.2250. NASS powder averaged $1.1751, down 1.1 cents, and dry whey averaged 36.48 cents, up 0.4 cents.
Provided courtesy of Dairyline.
Posted: August 1, 2010 at 7:03 pm
By News Editor
Farm milk prices keep inching higher. The Agriculture Department announced the July Federal order Class III price at $13.74 per hundredweight, up 12 cents from June and $3.77 above July 2009. That pulls the 2010 average to $13.60, up from $10.16 a year ago, and compares to $18.25 in 2008. The Class IV price is $15.75, up 30 cents from June and $5.60 above a year ago.
The NASS-surveyed cheese price averaged $1.4567 per pound, up a penny from June. Butter averaged $1.7375, up 14.3 cents. Nonfat dry milk averaged $1.2277, down 3.5 cents, and dry whey averaged 36.41cents, down a half cent.
Cash dairy product prices remain strong however cheese may be showing a little weakness. The blocks closed the last week of July at $1.6025 per pound, unchanged following six weeks of gain, but 31 3/4-cents above a year ago. Barrel closed at $1.5575, down a quarter-cent on the week, but 29 3/4-cents above a year ago. Six cars of block traded hands on the week and eight of barrel. The lagging NASS-surveyed U.S. average block price gained 6.3 cents, hitting $1.4999. Barrel averaged $1.5110, up 3.4 cents.
Butter gained a penny and a half, closing Friday at $1.8150, up 57 cents from a year ago. Nine cars were sold. NASS butter averaged $1.7713, up 2.8 cents.NASS powder averaged $1.1865, down 4.7 cents, and dry whey averaged 36.21 cents, up 0.1 cent.
Provided courtesy of Dairyline.
Posted: July 23, 2010 at 3:57 pm
By Chuck
Cheese prices continued to move higher this week with the blocks closing Friday at $1.6025 per pound, up 2 3/4-cents on the week, and 40 1/4-cents above a year ago.
Barrel closed at $1.56, up 3 1/2-cents on the week, and 39 cents above a year ago.
Cheese prices have strengthened for six consecutive weeks. Six cars of block traded hands on the week and eight of barrel. The NASS-surveyed U.S. average block price hit $1.4369, up 2.6 cents from the previous week, and barrel averaged $1.4766, up 5.6 cents.
Cash butter closed Friday at $1.80, up 2 1/2-cents on the week, and 54 cents above a year ago. Butter has also increased for six weeks in a row. Only one car was sold all week. NASS butter averaged $1.7438, up 2.4 cents.
Cash Grade A nonfat dry milk closed Friday at $1.21, down three quarters on the week, while Extra Grade held all week at $1.2250. NASS powder averaged $1.2335, up 0.1 cent, and dry whey averaged 36.15 cents, down 0.1 cent.
Provided courtesy of Dairyline.
Posted: July 16, 2010 at 1:03 pm
By Chuck
Cheese prices keep climbing, up the fifth week in a row, driven primarily by climbing temperatures around the nation. The blocks closed July 16 at $1.5750 per pound, up 4 3/4-cents on the week, 43 cents above that week a year ago, and the highest they’ve been since December. Barrel closed Friday at $1.5250, up 2 1/2-cents on the week, 38 1/2-cents above a year ago, and a nickel below the blocks. Only one car of block traded hands on the week and none of barrel. The NASS-surveyed U.S. average price of block hit $1.4112, up 0.9 cents, while the barrels averaged $1.4201, up 1.9 cents.
Butter inched higher in an effort to bring sellers to the market closing Friday at $1.7750, up 1 1/4-cents on the week, 52 1/2-cents above a year ago, and the highest since December 2004. Only two cars were sold all week. NASS butter averaged $1.7201, up 1.7 cents. The Daily Dairy Report says cream is very tight due to strong Class II production and decreasing component levels in milk.
Cash Grade A nonfat dry milk closed the week at $1.2175, up three quarters of a cent. Extra Grade closed at $1.2250, down a half-cent. NASS powder averaged $1.2336, down 4.8 cents. Dry whey averaged 36.21 cents, down a penny.
Provided courtesy of Dairyline.
Posted: July 9, 2010 at 4:51 pm
By Chuck
Cash cheese strengthened in the shortened 4th of July holiday week. The blocks closed that Friday at the year high $1.5275 per pound, up 7 1/4-cents on the week, and 43 3/4-cents above that week a year ago. Barrel closed at $1.50, up 10 cents, and 41 cents above a year ago. Only one car of block traded hands on the week and one of barrel. The lagging NASS-surveyed U.S. average block price slipped 0.4 cent, hitting $1.4025. Barrel averaged $1.4007, up 1.2 cents.
Butter closed at $1.7625, up 1 1/4-cents on the week, and 54 cents above a year ago. Nothing was traded all week. NASS butter averaged $1.7014, up 5.4 cents.
Cash Grade A nonfat dry milk closed the week at $1.21, down 2 cents, and Extra Grade closed at $1.23, down 1 1/2-cents. NASS powder averaged $1.2816, up 6.6 cents, and dry whey averaged 37.27 cents, up 0.9 cent.
Provided courtesy of Dairyline.
Posted: July 3, 2010 at 1:27 pm
By Chuck
The June Federal order Class III milk price was announced Friday at $13.62 per hundredweight (cwt.), up 24 cents from May, $3.65 above June 2009, and $1.39 above California’s comparable 4b price. The 2010 Class III average now stands at $13.58, up from $10.19 at this time a year ago, but compares to $18.26 in 2008.
Class III futures portend more gain to come. The July contract settled Thursday at $13.51, August at $14.34, and September at $14.87, with a peak of $14.85 in October before the seasonal downturn.
The Class IV price is $15.45, up 16 cents from May and $5.23 above a year ago.
The NASS-surveyed cheese price averaged $1.4475 per pound, up 2.2 cents from May. Butter averaged $1.5946, up 1 1/2 cents. Nonfat dry milk averaged $1.2631, up 1.1 cent, and dry whey averaged 36.88 cents, up fractionally.
California’s June 4b cheese milk price is $12.23, down 17 cents from May but $2.71 above a year ago. The 2010 average now stands at $12.29, compared to $9.84 a year ago. The 4a butter-powder price is $15.26, up $1.31 from May, and $5.20 above a year ago.
The cash block cheese price closed June Dairy month at $1.4550 per pound, up 4 1/2-cents on the week and 34 cents above a year ago. Barrel closed at $1.40, up a half-cent on the week, and 30 cents above a year ago. Ten cars of block traded hands on the week and three of barrel. The NASS U.S. average block price lost 3.6 cents, dipping to $1.4063. Barrel averaged $1.3885, down 0.2 cent.
Cash butter closed Friday at $1.75 up 3 cents on the week, 55 3/4-cents above a year ago, and the fifth consecutive weekly increase. Only one car was sold on the week. NASS butter averaged $1.6478, up 4.7 cents.
Cash Grade A nonfat dry milk lost 2 cents on the week, closing Friday at $1.23. Extra Grade held all week at $1.2450. NASS powder averaged $1.2159, down 9 1/2-cents, and dry whey averaged 36.34 cents, down 0.8 cent.
Provided courtesy of Dairyline.
Posted: June 25, 2010 at 1:21 pm
By Chuck
The cash dairy markets had little reaction to this week’s Cold Storage report. Block cheese closed Friday at $1.41 per pound, up a half-cent on the week, and 29 cents above that week a year ago. Barrel closed at $1.3950, up a penny on the week and 30 1/2-cents above a year ago. Only two cars of block traded hands on the week and six of barrel. The lagging NASS-surveyed U.S. average block price lost 1.7 cents, slipping to $1.4414. Barrel averaged $1.3909, down 3.6 cents.
Butter closed Friday at $1.72, up 8 1/2-cents on the week, 51 1/2-cents above a year ago, and the highest it has been since September 2008. Only six cars were sold on the week. NASS butter averaged $1.6012, up 2 1/2-cents.
Cash Grade A nonfat dry milk held all week at $1.25. Extra Grade lost a half cent, closing at $1.2450. NASS powder averaged $1.3059, up 0.2 cent, and dry whey averaged 37.18 cents, up 0.4 cent.
Provided courtesy of Dairyline.
Posted: June 18, 2010 at 1:45 pm
By Chuck
The cheese price roller coaster headed back up mid way through June Dairy Month as the market awaited the May Milk Production report which came out Friday afternoon after our deadline. Cash block ended the week at $1.4050 per pound, up 3 1/2-cents on the week, 28 3/4-cents above a year ago, and reversed three weeks of decline. The barrels closed at $1.3850, up 5 1/2-cents on the week, and 31 1/2-cents above a year ago. Fourteen loads of block traded hands on the week and 35 of barrel, all of them on Friday. The NASS-surveyed block price average lost a penny, slipping to $1.4581. Barrel averaged $1.4274, down 5.2 cents.
Butter continued its climb, closing Friday at $1.6350, up 2 1/2-cents on the week, and 43 cents above a year ago. Only three cars were sold on the week. NASS butter averaged $1.5766, up 3.4 cents. NASS powder averaged $1.3039, up 0.1 cent, and dry whey averaged 36.83 cents per pound, down 0.3 cent.
Provided courtesy of Dairyline.
Posted: June 17, 2010 at 4:06 pm
By News Editor
International Dairy Foods Association president and CEO Connie Tipton expressed disappointment in recent proposals that would create a government-mandated system to limit the supply of milk produced by dairy farms.
A “supply-management” proposal was recently introduced in the House of Representatives and a similar proposal was included as part of a dairy policy reform plan released last week by the National Milk Producers Federation.
“I’m not going to mince words,” IDFA President and CEO Connie Tipton told more than 80 dairy company leaders. “Supply management will destroy our dairy industry’s opportunity for the future.”
Tipton said that government-mandated supply-management programs, intended to reduce price volatility for dairy farmers, will only add more complexity to the system and will decrease demand for dairy products and dairy ingredients by encouraging non-dairy substitutions in foods and restaurants across the country.
“Dairy processors are sensitive to the market situation for farmers, and we are well aware that dairy producers are coming out of a period of devastating margins,” said Tipton. “But we need a solution that offers support AND opportunity.”
Tipton said that increasing demand for dairy products in global markets provides a unique opportunity for the U.S. dairy industry to grow and prosper.
“Supply management will stop U.S. dairy exports at a time when emerging markets are crying out for more dairy products,” she said. “Supply management will kill the growth of the U.S. dairy industry and prevent us from adding jobs that will help with our nation’s economic recovery.”
Tipton added that supply management will raise the price for basic foods and will cost the U.S. government hundreds of millions more to fund food and nutrition programs that are the priority of the Obama administration.
“IDFA has successfully fought supply management in many previous farm policy debates, and it is an idea that we need to fight hard to defeat,” Tipton said.
She called upon dairy producers, dairy coops, cattlemen and other national agriculture organizations that oppose supply management to join with IDFA to defeat supply management for the U.S. dairy industry.
Source: The International Dairy Foods Association (IDFA)
Posted: June 12, 2010 at 12:52 pm
By Chuck
The bleeding continued in the cash cheese market although prices reversed gears and regained a penny on Friday. The blocks closed June 11th at $1.37 per pound, down 2 3/4-cents on the week but still 22 cents above a year ago. The block price has lost 13 cents in three weeks. Barrel closed Friday at $1.33, also down 2 3/4-cents on the week, and 23 3/4-cents above a year ago. Thirty one cars of block traded hands on the week and 32 of barrel. The NASS-surveyed U.S. block price average gained 3.6 cents, hitting $1.4680. Barrel averaged $1.4795, up 2.5 cents.
On a brighter note; cash butter gained 3 1/2-cents on the week, closing Friday at $1.61, 38 1/4-cents above a year ago. Nothing was sold all week, the gains all came on unfilled bids. NASS butter averaged $1.5425, up 4.3 cents.
Cash Grade A nonfat dry milk closed Friday at $1.25, unchanged on the week, and Extra Grade closed at $1.25, down a penny. NASS powder averaged $1.3034, up 1.5 cents, and dry whey averaged 37.16 cents, up 0.2 cents.
Provided courtesy of Dairyline.
Posted: June 11, 2010 at 10:17 am
By News Editor
Recently National Milk Producers Federation (NMPF) held their spring board meeting. New officers were elected, and a new approach to reforming dairy policy called “Foundation for the Future” was approved. Read on to learn more.
New Board Elected
John Underwood was elected the Third Vice Chairman of NMPF, representing Northwest Dairy Association in Seattle, Wash. The new Board members include: Mickey Childers of Somerville, Alabama, representing Dairy Farmers of America, Inc.; Dan Senestraro of Johnson, Kansas, also representing Dairy Farmers of America; and Jim Werkhoven of Monroe, WA, representing the Northwest Dairy Association.
“Foundation for the Future.”
The features of NMPF’s Foundation for the Future plan include: transitioning the existing safety nets of the Dairy Product Price Support and Milk Income Loss Contract programs into a new Dairy Producer Margin Protection Program to guard against periods of severe financial pressures; establishing a Dairy Market Stabilization Program to help address periodic imbalances in milk production and demand; and reforming the Federal Milk Marketing Order program.
NMPF President and CEO Jerry Kozak said that the Foundation for the Future is the result of 12 months of detailed deliberations concerning the most appropriate course to follow in reforming federal dairy policies, some of which have been in place for many decades. He added that the package will be used as the basis for the future direction of the dairy provisions in the next Farm Bill, or in some other form of federal legislation that Congress may consider in the future.
The Federation’s proposal to revamp the federal safety net involves creating an insurance program tied to the margin between the national average cost of feed, and the national average all‐milk price. After farmers choose to enroll in the base level of the Dairy Producer Margin Protection Program at no cost to them, they would receive indemnity payments during periods when their margins are severely compressed, as they were for most of 2009. In addition, farmers would have the option of purchasing supplemental coverage to protect a higher margin level between feed costs and milk prices.
Another key element of the Foundation for the Future will be a Dairy Market Stabilization Program that sends a signal to producers that an imbalance in the marketplace could result in lower farm‐level margins. Like the Dairy Producer Margin Protection Program, the Stabilization Program is tied to farmers’ margins that could be reduced either by low milk prices and/or high feed costs.
The Stabilization Program was shaped by some key principles: that it allows for the growth of U.S. production, doesn’t encourage imports or hinder exports, and keeps government intervention at a minimum.
Lastly, the Foundation for the Future also calls for changes in the Federal Milk Marketing Order program to create a competitive milk price, maintain Class I differentials, and eliminate unpopular aspects of the current system, such as make allowances. The changes in the Federal Order system are intended to be revenue neutral so that farmers’ milk checks are not adversely impacted.
Source: National Milk Producers Federation
Posted: June 4, 2010 at 12:55 pm
By Chuck
CME cash cheese prices continued to weaken in the Memorial Day holiday-shortened week. The blocks closed Friday at $1.3975, 6 3/4-cents below the previous week, but 25 cents above a year ago. Barrel closed at $1.3575, down 7 1/4-cents on the week, and 25 3/4-cents above a year ago. Nineteen cars of block traded hands and 14 of barrel. The lagging NASS-surveyed U.S. average block price gained 3.4 cents, hitting $1.4325. Barrel averaged $1.4544, up 3.9 cents.
Butter strengthened, closing Friday at $1.5750, up 1 3/4-cents on the week and 32 1/4-cents above a year ago. Nothing was sold. NASS butter averaged $1.5858, up 0.2 cent.
Cash Grade A nonfat dry milk closed Friday at $1.25, down a nickel on the week. Extra Grade closed at $1.26, down 3 cents. NASS powder averaged $1.2878, up 1.6 cents, and dry whey averaged 37.01 cents, up 0.6 cent.
Provided courtesy of Dairyline.
Posted: May 28, 2010 at 5:22 pm
By Chuck
Cash dairy trading in the final week of May saw block cheese close at $1.4650 per pound, down 3 1/2-cents on the week, but 31 1/4-cents above a year ago. Barrel closed at $1.43, down 4 3/4-cents on the week, and 33 cents above a year ago. Eight cars of block traded hands on the week and 14 of barrel. The lagging NASS-surveyed U.S. average block price gained 0.9 cent, hitting $1.3988. Barrel averaged $1.4155, up 1 1/2-cents.
Butter closed the week at $1.5575, down 2 1/4-cents but 29 1/4 above a year ago. Only one car was sold all week. NASS butter averaged $1.5837, down 0.6 cent.
Cash Grade A and Extra Grade nonfat dry milk held all week at $1.30 and $1.29 respectively. NASS powder averaged $1.2722, up 1.9 cents, and dry whey averaged 36.46 cents, down 0.1 cents.
Provided courtesy of Dairyline.
Posted: May 21, 2010 at 12:37 pm
By Chuck
Cash cheese continued to inch higher despite the bearish Milk Production data. The blocks closed Friday at $1.50 per pound, up 3 3/4-cents on the week and 36 cents above that week a year ago. Barrel closed at $1.4775, up 6 cents on the week, and 39 3/4-cents above a year ago. Fifteen cars of block traded hands on the week and four of barrel. The NASS average block price slipped 1.4 cents, to $1.3898. Barrel averaged $1.4004, up 0.7 cent.
Butter reversed gears, closing at $1.58, down 3 1/2-cents on the week but 31 1/2 above a year ago. Eight cars sold. The NASS average hit $1.5896, up 0.3 cent.
Grade A nonfat dry milk also did an about face, closing at $1.30, down 3 1/2-cents on the week. Extra Grade closed at $1.29, down a penny. NASS powder averaged $1.2530, up 0.7 cents. Dry whey averaged 36.53 cents per pound, up a half cent.
Provided courtesy of Dairyline.
Posted: May 14, 2010 at 12:21 pm
By Chuck
Block and barrel cheese inched higher the second week of May, with the blocks ending the week 8 1/4-cents higher, at $1.4625 per pound, 33 cents above that week a year ago. Barrel closed Friday at $1.4175, up 4 1/2-cents on the week and 33 3/4-cents above a year ago. Six cars of block traded hands on the week and 15 of barrel. The lagging NASS-surveyed U.S. average block price lost 2.2 cents, slipping to $1.4040. Barrel averaged $1.3931, down 0.1 cent.
Cash butter continued to recoup some of the previous week’s loss and closed Friday at $1.6150, up a penny on the week and 35 cents above a year ago. Only one car was sold on the week. NASS butter averaged $1.5865, up 3.7 cents.
Cash Grade A nonfat dry milk closed three quarters of a cent higher on the week, at $1.3350. Extra Grade held all week at $1.30. NASS powder averaged $1.2389, up 2.2 cents, and dry whey averaged 36.07 cents, up 0.3 cent.
Provided courtesy of Dairyline.
Posted: May 11, 2010 at 6:36 pm
By News Editor
Dean Foods Co. announced it will be cutting jobs in its processing plants after profit losses.
The discounting prompted Dean’s chief executive to describe prices as dropping “beyond sustainable levels.” Dean, the nation’s largest dairy processor, said that its profit fell 43 percent to $43.15 million, or 24 cents a share. That compares with profit of $76.25 million, or 48 cents a share, a year ago.
Dean shares closed Monday at $10.47 – a tumble of 28.43 percent, the largest one-day decline in at least six years. The company blamed its poor profit picture on retailers taking “zero profit” on their own store-brand milk.
“Our most profitable brands, the ones with the highest [price] premiums, suffered the most,” said Gregg Engles, chairman and CEO. He called the pressure on milk prices intense. The retail price wars could strip more than $100 million from company margins this year, he said.
To shore up the bottom line, Dean said it will cut up to 400 jobs in its largest division, Fresh Dairy Direct/Morningstar, which sells milk and other traditional dairy products under private labels and regional brand names. The cuts, expected to save the company $25 million, are on top of 150 jobs eliminated earlier this year. The cuts will come nationwide throughout the year.
First-quarter sales were $2.97 billion, up nearly 10 percent from a year ago, thanks to increased sales at its division that sells organic and soy milk. Also, as the prices Dean pays to dairy farmers increase, Dean is permitted by the government to pass those costs on to customers, including retailers.
Source: The Dallas Morning News
Posted: May 7, 2010 at 4:20 pm
By Chuck
The cash block cheese price closed the first Friday in May at $1.38 per pound, down three-quarters on the week, but 24 1/4-cents above a year ago. Barrel closed at $1.3725, also down three quarters, but 31 3/4-cents above a year ago when the barrels bottomed out at $1.0550. Eight cars of block traded hands on the week and 10 of barrel. The lagging NASS-surveyed U.S. average block price lost 1.3 cents, slipping to $1.4257. Barrel averaged $1.3939, down 2.7 cents.
Butter inched 2 cents higher Monday and Tuesday, plunged 6 cents Wednesday, regained 2 on Thursday, and a half-cent Friday, and closed at $1.6050, down a penny and a half, and reversed 12 weeks of gains, but it’s 36 1/2-cents above a year ago. Eight cars were sold. NASS butter averaged $1.5491, up 3.4 cents.
Cash Grade A nonfat dry milk closed at $1.3275, up 3 cents on the week. Six cars were sold. Extra Grade closed at $1.30, up a nickel. NASS powder averaged $1.2174, up 4 cents. Dry whey averaged 35.74 cents, up 0.5 cent.
Provided courtesy of Dairyline.
Posted: May 1, 2010 at 6:46 pm
By Chuck
Cash dairy trading didn’t see a lot of change the last week of April but the block cheese price closed 2 cents higher, at $1.3875 per pound, 23 1/2-cents above that week a year ago. Barrel closed Friday at $1.38, up 3 1/4-cents on the week, and 29 1/4-cents above a year ago. Only two cars of block traded hands on the week and one of barrel. The U.S. average, NASS-surveyed block price gained 4.7 cents, hitting $1.4384. Barrel averaged $1.4209, down 1.2 cents.
Butter closed Friday at $1.62, up a nickel on the week, and 39 cents above a year ago. Nothing was sold. NASS butter averaged $1.5153, up 2 cents.
Grade A and Extra Grade nonfat dry milk closed unchanged on the week at $1.2975 and $1.25 respectively. NASS powder averaged $1.1774, up 3.4 cents, and dry whey averaged 35.23 cents, down 1.2 cents.
Provided courtesy of Dairyline.
Posted: April 19, 2010 at 8:04 am
By Chuck
The cheese price roller coaster is back in business as the blocks tumbled 10 cents the second week of April, ending Friday at $1.3975 per pound, still 22 3/4-cents above that week a year ago. The barrels rolled 7 1/2-cents lower, to $1.3650, but that’s 25 1/2-cents above a year ago. Only two cars of block traded hands on the week and 13 of barrel. The lagging NASS-surveyed U.S. average block price hit $1.3166, up 3.1 cents. Barrel averaged $1.3598, up 6 cents.
University of Wisconsin Emeritus Professor, Dr. Robert Cropp, commenting in Tuesday’s DairyLine, recalled that it was just a few weeks ago the price was at $1.26 or $1.27 and “that seemed way too low,” then it approached $1.50, and “now we’re going back down again.”
February cheese stocks were relatively high, he explained, and the other disturbing thing is that USDA revised its 2010 milk production forecast again. It had once predicted a 0.7 percent decrease from 2009 but is now expecting a 0.3 percent increase, plus growing cow numbers is another concern, he said.
“The concern is that milk production is not going to decline as we thought,” Cropp said. That, with plentiful stocks and a weaker than expected export market on nonfat dry milk, portends cheaper powder and more milk going to cheese.
The market has to strengthen in the second half, he warned, because these cheese prices portend a Class III milk price below $14 and that will continue to stress farmers, with no recovery for lost equity. That could mean second half decreases in the milk supply and a recovery in prices, he said. Cropp looks for cheese to “bounce around $1.40-$1.45 until we move further into summer.
Butter remains strong and closed Friday at $1.56 per pound, up 6 cents on the week, and 35 3/4-cents above a year ago. Only four cars were actually sold on the week. NASS butter averaged $1.4749, up 2.3 cents.
Cropp said cream supplies are tighter as temperatures rise and more cream goes into ice cream. Butter sales are “half way reasonable,” he said, and earlier, there was some inventory building by buyers who recognize that the cream supply and butter production will get tighter as we move into summer. Butter stocks are also slightly below a year ago, he said.
Cash Grade A nonfat dry milk closed Friday at $1.2925, up 2 3/4-cents on the week. Extra Grade closed at $1.21, up 2 cents. NASS powder averaged $1.1111, up 4.5 cents. Dry whey averaged 36.34 cents, up 1.9 cents.
Provided courtesy of Dairyline.
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