World Agricultural Supply and Demand Estimates left milk production estimates for 2014 unchanged from last month at 206.1 billion pounds. The average cheese price for the year is unchanged although the price range narrowed a bit to $1.995 to $2.025. Butter was raised a bit to between $1.80 and $1.86 per pound, nonfat dry milk unchanged at $1.83 to $1.86 and the whey price estimate was raised a little projected between 63 and 65 cents per pound.
The average milk price estimates were raised a little; Class III is now pegged at between $20.55 and $20.85 this year, Class IV $21.25 to $21.65 and the All Milk price is estimated to range from $22.70 to $23.00.
The Outlook Board also out predicting a sizeable increase in production in 2015. They expect 212.1 billion pounds with the all milk price projected at $19.70 to $20.70.
Dairy markets gave Thursday’s gains back on Friday, cash cheese barrels declined 3.25 cents and Class III futures responded accordingly. For the week, cash cheese barrels down 3.5 cents, blocks are 2.5 cents lower, butter increased 9.25 cents while nonfat dry milk lost a quarter-cent. Class III futures for May down 4 cents, June declined 32 cents, July lost 28 cents and the November contract is 3 cents lower.
Around the globe: Dairy Market News says milk production has reached its peak in Western Europe, is quickly building toward the seasonal peak in Eastern Europe. Some autumn rains have put a little bump in Australian production as the late-season pastures improved while heavy rains are pushing New Zealand dairy producers to dry their cows off a little early.