Cheddar cheese posted modest price gains in the spot market on the Chicago Mercantile Exchange for the week ending on Wednesday of this week.
Including a one cent pickup on Wednesday as the result of an unfilled bid to buy one carload, the Cheddar block price stood at $1.8350 per pound - up by 6.25 cents per pound from a week earlier. Cheddar barrels lost .25-cent on Wednesday because of an uncovered offer to sell one carload but the closing price of $1.7775 per pound was up by 3.75 cents from a week earlier.
The price slide continued for AA butter on Wednesday as an uncovered offer to sell lowered the price by .75-cent to $1.52 per pound. Nine carloads of butter were sold earlier in the week on the spot market.
Price remained relatively strong for non-fat dry milk. The Grade A price gained .50-cent per pound on Wednesday as a result of an unfilled bid to buy one carload to close at $1.8350 while the Grade Extra price held at $1.80 per pound.
The Class III milk futures registered small gains into spring of 2014 in trading on Wednesday.
In the early afternoon, prices for nearby months stood at $18.23 per hundred for October, $18.29 for November, $17.81 for December, and $17.17 for January 2014 before dropping into the upper $16s through June of next year and rebounding to the very low $17s for the latter half of 2014.
Dry whey futures prices continue to provide strength for the base price of milk.
In small volume trading on Wednesday of this week, they were in a range from 59.5 cents per pound for late this year to 51 cents for August of 2014.
Dairy economists indicate that every one cent per pound in the dry whey price is worth about six cents per hundred in the Class III price for milk.
The Producer Price Differential for milk shipped in September and pooled in Federal Milk Marketing Order 30 is 36 cents per hundred for the Chicago base zone and 16 cents at the most distant milk receiving plants.
This put the statistical uniform price at $18.50 per hundred in Order 30 for the month.
Of the more than 2.747 billion pounds of milk pooled in Order 30 for the month, 86.5 percent went for Class III use (cheese production), 10.8 percent to Class I (fluid milk bottling), and a total of 2.7 percent in Classes II and IV.
The pooled milk had average components of 3.73 percent butterfat, 3.06 percent protein, and 5.73 percent other solids.
Cooperatives Working Together (CWT) has announced the receipt of a batch of seven bids from Bongard Creameries of Minnesota, Dairy Farmers of America, and the Maryland and Virginia Milk Producers Cooperative.
The bids were for financial assistance of the export of 2.429 million pounds of Cheddar and Gouda cheese and 440,925 pounds of butter.
The deliveries are scheduled to go to countries in Europe, Asia, the Middle East, and North Africa from October-March of 2014.
This brings the 2013 totals in the CWT program for those products to 109.329 million pounds of cheese and 80.236 million pounds of butter along with 218,258 pounds of whole milk powder and 44,092 pounds of anhydrous milkfat - the equivalent of 2.816 billion pounds of milk on a milkfat basis.
The shipments have gone to 37 countries on six continents.
On a related point, the U.S. Dairy Export Council is projecting the value of the nationâ€™s dairy exports to hit $6.5 billion for 2013. This would be a 25-percent increase from 2012 and be a fourth consecutive record year for dairy exports.