World Dairy Diary

Dairyline Markets In Review

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.

Dairyline Markets In Review

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.

Dairyline Markets In Review

The big question after Easter was; will the run up in cheese prices hold? That appeared to be the case the first full week of April as prices advanced for the fourth week in a row but they reversed gears Friday, resisting the climb above $1.50. The blocks closed Friday at $1.4975 per pound, down 1 1/4-cents on the day, up 6 3/4-cents on the week, and 26 1/4-cents above a year ago. Barrel closed at $1.44, down 1 1/2-cents on the day, up 6 1/2-cents on the week, and 27 cents above a year ago. Three cars of block traded hands on the week and nine of barrel. The NASS-surveyed U.S. average block price lost 1 1/2-cents, hitting $1.2866. Barrel averaged $1.3003, up 1.1 cents.

Butter closed Friday at $1.50, up a half-cent on the week and 29 1/2-cents above a year ago. Three cars were sold. NASS butter averaged $1.4524, up 0.1 cent.

Cash Grade A nonfat dry milk closed the week at $1.2650, up 4 cents, while Extra Grade closed at $1.19, up 2 1/2-cents. NASS powder averaged $1.0657, up 1.4 cents, and dry whey averaged 38.22 cents, up 1.3 cents.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Cheese prices started April on an upswing. The blocks closed Thursday at $1.43 per pound, up 10 1/2-cents on the Good Friday holiday shortened week, and 15 cents above a year ago and that’s no “April fools.” The barrels closed at $1.3750, up 6 1/4-cents on the week, and 11 1/2-cents above a year ago. Only two cars of each traded hands. The NASS-surveyed U.S. average block price lost 3.3 cents, slipping to $1.3019. Barrel averaged $1.2895, down 1.2 cents.

Butter closed at $1.4950, up a half-cent on the week and 31 1/2-cents above a year ago. Seven cars were sold. NASS butter averaged $1.4511, down 0.6 cent.

Cash Grade A nonfat dry milk closed the week at $1.2250, up 7 1/2-cents on the week. Extra Grade closed at $1.1650, up 4 1/2-cents. NASS powder averaged $1.0534, up 0.9 cent. Dry whey averaged 36.89 cents, down 0.1 cent.

Provided courtesy of Dairyline.

Dairyline Markets in Review

Cash dairy prices remain a key focus among farmers, processors, bankers, and related industry suppliers and the news was good this week. The block cheese price gained 5 1/2-cents, closing at $1.3250 per pound, 3 1/2-cents above a year ago. Barrel closed Friday at $1.3125, up 4 3/4-cents on the week, and a penny and a half above a year ago.

Eight cars of block traded hands on the week and 26 of barrel. The lagging NASS-surveyed U.S. average block price fell 5.6 cents, to $1.3344. Barrel averaged $1.3018, down 3.5 cents.

Butter closed Friday at $1.49, up 2 cents on the week, and 30 1/4-cents above a year ago. Only five cars were sold. NASS butter averaged $1.4569, up 2 cents.

Cash Grade A nonfat dry milk gained 3 1/2-cents on the week, hitting $1.15, while Extra Grade held at $1.12. NASS powder averaged $1.0446, up 0.3 cent, and dry whey averaged 37.03 cents, down a penny.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairyline Markets In Review

The cash dairy markets were anticipating last Thursday’s milk production report. The block cheese price, after holding steady for five straight sessions, inched up a quarter-cent Friday, despite the milk production data, and closed at $1.27 per pound, up a quarter-cent on the week, but 2 1/4-cents below a year ago. Barrel closed at $1.2650, also up a quarter-cent Friday and on the week, and 3 1/4-cents below a year ago. Sixteen cars of block traded hands on the week and 22 of barrel. The latest NASS-surveyed U.S. average block price hit $1.3901, down 4.8 cents. Barrel averaged $1.3370, down 6 cents.

Butter closed at $1.47, up 1 1/2-cents on the week, and 28 3/4-cents above a year ago. Six cars were sold. NASS butter averaged $1.4367, up 2.8 cents.

Cash Grade A nonfat dry milk closed the week at $1.1150, up a half-cent. Extra Grade held all week at $1.12. NASS powder averaged $1.0490, down 0.6 cent, and dry whey averaged 38.02 cents, down 0.4 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairyline Markets In Review

Cheese prices continued to bleed the second week of March but may have hit bottom. Dairy Profit Weekly’s headline last week that 2010 optimism may have been premature may be hauntingly true. Cash block cheese closed Friday at the Chicago Mercantile Exchange at $1.2675 per pound, down 3 cents on the week, and just 1 3/4-cents above a year ago. The barrels closed at $1.2625, up a penny and a quarter on the week, but 5 1/2-cents below a year ago. The block price lost 23 3/4-cents in the last four weeks with comparable losses on barrel.

Twenty five cars of block traded hands on the week and 35 of barrel. The latest NASS-surveyed block price averaged $1.4378 across the U.S., down 5.4 cents, while barrel averaged $1.3976, down 6.9 cents.

Butter is, or was, the bright spot. After eight consecutive sessions of gain the butter price gave up 3 cents this week and closed Friday at $1.4550, up a half cent from the previous week and 27 cents above a year ago. Thirty six cars were sold on the week. NASS butter averaged $1.4076, up 5.2 cents.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairyline Markets In Review

Block cheese fell 4 1/4-cents the first week of March, closing Friday at $1.2975 per pound, but that’s still 9 3/4-cents above that week a year ago. Barrel closed at $1.25, down 4 cents on the week, but 3 cents above a year ago. Eight cars of block traded hands on the week and 34 of barrel. The NASS-surveyed U.S. average block price fell 1.4 cents, to $1.4921. Barrel averaged $1.4661, down 3.4 cents.

Thankfully, the butter market remains strong, closing Friday at $1.45, up 4 1/2-cents on the week and 28 1/4-cents above a year ago. Only one car was sold all week. NASS butter averaged $1.3592, up 1.9 cents.

Cash Grade A nonfat dry milk lost a penny on the week, closing Friday at $1.11. Extra Grade plunged 12 cents, dipping to $1.12. NASS powder averaged $1.0448, down 2.5 cents, and dry whey averaged 38.94 cents, down 0.5 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairyline Markets In Review

Cash cheese prices lost more ground in the final week of February. The blocks closed Friday at $1.34 per pound, down 7 1/4-cents on the week, but are still 16 1/2-cents above a year ago when the blocks plunged 13 1/2 cents, to $1.1750. Barrel cheese closed Friday at $1.29, down 8 3/4-cents on the week, but 11 cents above a year ago.

The losses were on top of the previous week’s declines of 9 1/4 and 6 3/4-cents respectively. Thirty one loads of block traded hands on the week and 15 of barrel. The lagging NASS-surveyed U.S. average price on block cheese gained 0.4 cent, hitting $1.5059. Barrel averaged $1.5005, down 0.9 cent.

Butter closed February at $1.4050 per pound, up 4 1/2-cents on the week, and 25 1/2-cents above a year ago. Thirteen cars sold on the week and the NASS butter price averaged $1.3407, down a penny . NASS nonfat dry milk averaged $1.0697, down 7.2 cents, and dry whey averaged 39.46 cents, down 0.1 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairyline Markets In Review

Cash cheese prices headed south in the President’s Day holiday shortened week as the markets awaited Friday afternoon’s January Milk Production report. The blocks closed Friday morning at $1.4125 per pound, down 9 1/4-cents on the week, but still 10 1/4-cents above a year ago. The barrels closed at $1.3775, down 6 3/4-cents on the week, and 10 3/4s below a year ago. Fifteen cars of block traded hands on the week and 12 of barrel. The NASS U.S. average block price hit $1.5024, up 2.7 cents. Barrel averaged $1.5098, down 1.6 cents.

Butter lost a penny Tuesday, then jumped a nickel, but gave back 2 on Friday to close at $1.36, up 2 cents on the week, and 25 3/4-cents above a year ago. Twenty eight cars were sold. NASS butter averaged $1.3503, down 4.2 cents.

Cash Grade A nonfat dry milk finished the week at $1.12, up 1 1/2-cents, while Extra Grade held all week at $1.24. NASS nonfat dry milk averaged $1.1417, down 0.3 cent, and dry whey averaged 39.6 cents, up 0.6 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

Cash dairy prices have the full attention of farmers, bankers, and processors as the “recovery” appears to be slowing, even though cash block cheese closed the second week of February at $1.5050 per pound, up 1 1/4-cents on the week and 26 1/2-cents above that week a year ago. Barrel closed Friday at $1.4450, down 2 3/4-cents on the week but 21 1/2-cents above a year ago. Four cars of block traded hands on the week and six of barrel. The NASS-surveyed U.S. average block price gained 2.5 cents, hitting $1.4750. Barrels averaged $1.5258, up 2.3 cents.

Butter closed at $1.34, up 1 1/4-cents on the week and 23 3/4-cents above a year ago. Eleven cars sold. NASS butter averaged $1.3912, down 1.3 cents.

Cash Grade A nonfat dry milk closed Friday at $1.1050, down 4 1/2-cents on the week. Extra Grade held all week at $1.24. NASS powder averaged $1.1448, up 1.2 cents. Dry whey averaged 39 cents per pound, up 0.1 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

The cash cheese market weakened the first week of February, sending shivers to farmers and their bankers. With Super Bowl demand behind us it remains to be seen what happens next. The cash block price closed the first Friday of February at $1.4925 per pound, down 2 1/4-cents on the week, but still 33 1/2-cents above that week a year ago.

The barrels closed at $1.4725, down 3 1/4-cents on the week, and 32 1/2-cents above a year ago. Only one car of block traded hands on the week and two of barrel. The NASS-surveyed U.S. average block price fell 1.4 cents, to $1.4502, while the barrels gained 2.6 cents, averaging $1.5024.

Cash butter started the week losing 2 cents, then gained almost 4 cents, but gave back 2 on Friday to close at $1.3275, down a quarter-cent on the week, but 22 1/2-cents above a year ago. Twenty four cars traded hands on the week. NASS butter averaged $1.4039, up 1.9 cents.

Cash Grade A nonfat dry milk closed the week at $1.15, down 4 cents, and Extra Grade held all week at $1.24. NASS nonfat dry milk reversed gears, averaging $1.1328, up 4.1 cents, following the previous week’s 19.6-cent loss. Dry whey averaged 38.94 cents, up 0.3 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

The cash market saw block cheese move higher for the third week in a row while butter and nonfat dry milk plunged the final week of January. Cash block cheese closed Friday at $1.5150 per pound, up 3 1/2-cents on the week and 36 1/2-cents above a year ago. Barrel closed at $1.5050, unchanged on the week, and 39 cents above a year ago. Ten carloads of each traded hands on the week. The NASS-surveyed block price averaged $1.4644 across the U.S., down 8.4 cents. Barrel averaged $1.4769, down 0.3 cent.

Butter closed the week at $1.33, 13 3/4-cents below the previous week, but
22 3/4-cents above a year ago. Thirteen cars were sold on the week. NASS butter averaged $1.3854, up 4.6 cents.

Cash Grade A nonfat dry milk closed Friday at $1.19, down 11 cents, and Extra Grade closed at $1.24, down 6 cents. NASS powder averaged $1.0917, down a whopping 19.6 cents, and dry whey averaged 38.66 cents, down 0.3 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

Cash dairy prices were mixed in the Martin Luther King Day holiday shortened week. Block cheese closed Friday at $1.48 per pound, up 6 1/2-cents on the week and 40 1/2-cents above a year ago. Barrel closed at $1.5050, up 4 cents on the week, and 40 1/2-cents above a year ago. Four cars of block traded hands on the week and one of barrel. The NASS-surveyed U.S. average block price lost 9.3 cents, slipping to $1.5483. Barrel averaged $1.4794, up 0.1 cent.

Butter went in the other direction, closing Friday at $1.4675, down 5 3/4-cents on the week, but still 36 1/2-cents above a year ago. Fourteen cars were sold. NASS butter averaged $1.3391, up 0.9 cent. NASS nonfat dry milk averaged $1.2879, down 6.3 cents, and dry Whey averaged 39.02 cents, up 0.2 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

All eyes are on the cash dairy markets as three weeks of declines in block cheese came to an end and the butter market started to heat up. The second full week of 2010 saw the block price close at $1.4150 per pound, up a half-cent on the week, and 34 1/2-cents above that week a year ago. Barrel closed Friday at $1.4650, up 3 1/4-cents on the week, 37 1/2-cents above a year ago, and a nickel above the blocks. Nineteen cars of block traded hands on the week and only three of barrel. The NASS-surveyed U.S. average block price dropped 6 cents, to $1.6407. Barrel averaged $1.4783, down 0.9 cent.

Butter closed the week at $1.5250, up 18 cents, and 41 1/4-cents above a year ago. Twenty six cars were sold. NASS butter averaged $1.3302, down 0.7 cent.

Cash Grade A and Extra Grade nonfat dry milk closed the week at $1.30 per pound, down 7 and 8 1/2 cents respectively. NASS nonfat dry milk averaged $1.3507, up 7 cents, and dry whey averaged 38.79 cents, down 0.2 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

The first week of trading in 2010 saw cash block cheese fall to $1.41 per pound, down 4 cents on the week but 33 3/4-cents above a year ago. The blocks have lost 29 1/4-cents in the last three weeks.

The barrels closed the first Friday of 2010 at $1.4325, up a quarter-cent on the week and 36 1/4-cents above a year ago. Barrels got as low as $1.03 on January 7, 2009. Twenty four cars of block traded hands in the first week of 2010 and 12 of barrel. The NASS-surveyed U.S. block average hit $1.7004, up 0.9 cent. The barrels averaged $1.4878, down 1.2 cents.

Butter closed Friday at $1.3450, up 1 3/4-cents on the week and 23 1/2 above a year ago. 28 cars were sold. NASS butter averaged $1.3370, down 1.9 cents.

Cash Grade A nonfat dry milk held at $1.37 but Extra Grade closed at $1.3850, down 1 1/2-cents on the week. NASS powder averaged $1.2807, down 5.2 cents, and dry whey averaged 38.57 cents, up 1.3 cents on the week.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

Cash cheese prices at the Chicago Mercantile Exchange ended the year on a down note and corrected the unusually large price spread, but prices are sharply above those a year ago. The block price closed New Year’s Eve at $1.45 per pound, down 11 3/4-cents on the holiday shortened week, but a whopping 31 3/4-cents above that week a year ago when they tumbled almost 14 cents, to $1.1325. This week’s loss was in addition to the previous week’s 13 1/3 cent decline.

Barrels closed at $1.43, down a penny on the week but 30 cents above a year ago. Sixteen cars of block traded hands on the week and three of barrel. The NASS surveyed U.S. average block price hit $1.6917, up 1.7 cents. Barrel averaged $1.4994, down 1.5 cents.

Butter held all week at $1.3275, 19 3/4-cents above a year ago. Nothing sold. NASS butter averaged $1.3556, down 8 cents. NASS nonfat dry milk averaged $1.3327, up 4.3 cents, and dry whey averaged 37.25 cents, up 0.3 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

Block cheese closed the shortened holiday week at $1.5675 per pound, down 13 1/2-cents on the week, but 29 3/4-cents above that week a year ago. Barrel closed Thursday at $1.44, unchanged on the week, 13 1/4-cents above a year ago, and 12 3/4-cents below the blocks. Twenty seven cars of block traded hands on the week and six of barrel.

Butter closed Thursday at $1.3275, up a quarter-cent on the week, and 18 3/4-cents above a year ago. Twelve cars were sold on the week.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review

Industry eyes are on the large price spread which grew this week between Chicago Mercantile Exchange block and barrel cheese. It is the longest lived spread ever and is hurting barrel manufacturers particularly.

The blocks closed the third week of December at $1.7025 per pound, up a quarter-cent on the week, and 40 cents above a year ago when the blocks plunged 21 cents, to $1.3025. Barrel closed December 18 at $1.44, down 2 cents on the week, 8 1/2-cents above a year ago, but 26 1/4-cents below the block price. Forty five cars of block traded hands on the week and only two of barrel. The NASS-surveyed U.S. average block price averaged $1.6227, up 3.8 cents. Barrel averaged $1.5165, down slightly.

Butter closed at $1.3250, down 12 1/2-cents on the week, but 15 1/2-cents above a year ago. Eight cars were sold. NASS butter averaged $1.4520, down 4.6 cents.

Cash Grade A nonfat dry milk closed Friday at $1.37, down a penny. Extra Grade held all week at $1.40. NASS nonfat dry milk averaged $1.2756, up 1.4 cents. Dry whey averaged 36.34 cents, up 0.1 cent.

Provided courtesy of Dairyline.

Dairyline Markets In Review

Dairy Markets Week in Review
The cash cheese market showed more strength during the shortened Thanksgiving week. The blocks gained five cents, to close at $1.65 per pound, but that’s still 15 1/4-cents below a year ago. Barrels gained a penny, to close at $1.51, 28-cents below a year ago and 14 cents below the blocks. Three cars of block traded hands on the week and five of barrel.

Butter remained unchanged at $1.5250. That’s cents 2 1/2-cents above a year ago. Sixteen cars traded hands on the week. Cash powder was quiet with Grade A and Extra Grade both remaining at $1.40.

Provided courtesy of Dairyline.