Dairy commodity markets post steady price gains
Until Wednesday of this week, Cheddar cheese and AA butter prices were posting small daily gains in the spot market on the Chicago Mercantile Exchange.
That trend hiccupped on Wednesday with a 2.75-cent decline in the price for Cheddar barrels on a market day with two carload sales and uncovered offer to sell one carload.
The price closed at $1.6975 per pound after hitting a high for the year.
Cheddar blocks held at $1.72 per pound, also a high for 2012, on Wednesday. The day's market activity was one carload sale and one uncovered offer to sell.
Following one unfilled bid, the AA butter spot market price held at $1.58 per pound on Wednesday. That market had picked up three cents per pound earlier in the week.
The non-fat dry milk spot market prices also remained at highs for the year on a quiet market day. The prices are $1.29 per pound for Grade A and $1.1950 for Grade Extra.
Reflecting the setback on the Cheddar barrel price, the Class III milk futures for the upcoming three months shed 23 to 26 cents per hundred on Wednesday after also setting price highs earlier in the week.
Closing futures prices were $16.69 per hundred for July, $17.80 for August, $18.82 for September, $18.57 to $18.61 for October, November, and December, and in the lower $18s and high $17s per hundred for all months in 2013.
Futures prices for dry whey were also in red ink territory for nearby months on Wednesday but they were still above 58 cents per pound for September through December of this year. Then they trend downward, holding at 50 cents of above, however, for the first nine months of 2013.
In one of the largest volume transactions ever, Cooperatives Working Together has accepted a package of seven bids from Dairy Farmers of America, Land O'Lakes, Darigold Cooperative, and United Dairymen of Arizona.
These groups are requesting export assistance on the sale of 10.018 million pounds of butter and Cheddar cheese to countries in Asia, North Africa, and the Middle East. Deliveries are scheduled from July through December.
The national milk production numbers for June were released on Thursday afternoon (July 19).