Except for the AA butter spot market on the Chicago Mercantile Exchange, it was a quiet period for trading of dairy commodities through Wednesday of this week.
There was no activity in the spot market for Cheddar block and barrels during the first three days of this week as the prices stood at their highest point for 2012 for five consecutive trading days through Wednesday - $2.10 per pound for blocks and $2.06 for barrels.
The AA butter spot market has been very active, however, with 13 carloads being sold during the first three sessions this week, including six sales on Wednesday along with an unfilled bid for one carload.
The butter price closed down by one cent per pound at $1.94 on Wednesday. It had fallen by 9.25 cents - to $1.86 per pound - on Friday, Oct. 5 but then rebounded on Monday and Tuesday of this week.
As has been the case for two weeks, there was no trading activity or price change in the spot market for non-fat dry milk. The prices are standing at $1.66 per pound for Grade A and $1.6350 for Grade Extra.
Despite some price dips for nearby months, the dry whey futures prices remained at above 60 cents per pound for all months through January of 2013 and in the 50s for all remaining months of 2013.
In the Class III milk futures, October posted the highest monthly closing price of $21.03 per hundred on Wednesday of this week. The prices retreated modestly for November and December, putting them at $20.75 and $20.37 per hundred respectively.
For 2013, the Class III milk futures show a gradual decline from $19.65 per hundred for January to $17.92 in December. Then they drop sharply, falling to a low of $13.50 per hundred for September of 2014.
Cooperatives Working Together has accepted a batch of five bids from Darigold Cooperative and Dairy Farmers of America for financial assistance on the export of 1.056 million pounds of Cheddar and Monterey Jack cheese and 4,409 pounds of anhydrous milkfat to customers in Central America and Asia. Deliveries are scheduled from October to April of 2013.
Within the coming week, there will announcements on the producer price differential for September in the Upper Midwest Milk Marketing Order 30 and on the national milk production for September.