Dairy Markets and Cold Storage Numbers - Cowsmo

Dairy Markets and Cold Storage Numbers

A mixed day to close out the week in the dairy markets; cash cheese barrels on the Chicago Mercantile Exchange declined a half-cent to $1.755 while blocks increased 1.5 cents to $1.835. Cash butter increased 2 cents to $1.68 on one sale.

Grade A nonfat dry milk increased 2 cents and Extra Grade was up a penny. Class III futures were a little lower on the day.

For the week, cash cheese barrels down a quarter-cent, blocks up 1.5 cents, butter gained 3 cents, Grade A nonfat dry milk increased a penny while Extra Grade jumped 7.5 cents higher. Class III futures for December, January and February increased an average 2 cents. (December increased dime, January lost 4 cents and February was unchanged).

Dairy Market News reports nonfat dry milk supplies are tight and pricey making it difficult to secure product. Domestic demand is good but strong export demand, especially for skim milk powder is reducing NDM production. Western European skim and whole milk powder demand is especially strong and most dry product supplies are committed through the end of 2013. Cream supplies are also very tight in Europe as volumes are being pulled away from the butter churns into more profitable products.

Total cheese in cold storage at of October 31st 1.024 billion pounds down 4 percent for the month but 3 percent more than October 31st, 2012. The National Ag Statistics Service reports American-type cheese stocks declined 5 percent for the month to 629 million pounds, up 3 percent for the year. Butter stocks as of October 31st were 173.8 million pounds down 25 percent for the month but up 20 percent for the year.

 

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