Dairy markets seeking
winter price strength
Slight upturns in both the Class III milk and dry whey futures prices on Wednesday of this week provided a bit of encouragement to the dairy markets after several weeks of a steady decline in prices.
With no distinct price support in the dairy commodity spot markets on Wednesday, the Class III futures price nevertheless rose by 26 cents per hundred to $15.80 while the April price gained 15 cents to $15.88.
All other months from February 2012 through September of 2013 were trading in the $16s per hundred.
The Class III futures price range was from $16.09 for May 2012 to highs of $16.60 for September and October of 2012 and February of 2013. After a 2-cent gain, the February 2012 price was at $16.12 per hundred.
In another minor turnaround on Wednesday of this week, the dry whey futures prices for March through June of this year posted small gains.
This left the prices at 64.5 cents per pound for February before they slide to 50.975 cents for June, to the 40s for all other months through January of 2013, and then to very close to 38 cents per pound for February of 2013 through January of 2014.
At the close of the spot market on the Chicago Mercantile Exchange on Wednesday of this week, the prices for both Cheddar cheese blocks and barrels stood at $1.48 per pound.
The block market was quiet on Wednesday while barrels picked up .50-cent on an unfilled bid to buy two carloads. On Friday, Feb. 10, 11 carloads of barrels and three of blocks were sold in the spot market.
The AA butter spot market price continued to slip, including a 4-cent per pound drop on Monday of this week as the result of an uncovered offer to sell.
There were five carload sales on Tuesday of this week and another five sales on Wednesday as the price dropped by .25-cent to $1.3975 per pound.
Non-fat dry milk spot market prices held at $1.3350 per pound for Grade A and $1.2975 for Grade Extra on Wednesday of this week. There was an uncovered offer to sell one carload of Grade A.
A producer price differential of 39 cents per hundred in the Chicago base zone was announced for the 2.875 billion pounds of milk pooled in the Federal Milk Marketing Order 30 for January. This put the month's statistical uniform price at $17.44 per hundred.
Of the pooled milk, only 11.6 percent was used in the Class I market while 82 percent went to Class III. Classes II and IV combined for 6.4 percent. That milk had component averages of 3.84 percent butterfat, 3.13 percent protein, and 5.76 percent other solids.
Cooperatives Working Together has announced the receipt of 36 bids for export assistance on the shipment of 6.237 million pounds of Cheddar and Monterey Jack cheeses and 4.504 million pounds of butter to countries in Asia, Central America, the Middle East, and North Africa by June of this year.
The bidders are Bongard's Creamery, Darigold Cooperative, Dairy Farmers of America, United Dairymen of Arizona, Virginia Milk Producers, Michigan Milk Producers Association, and O-TA-KA of Niagara, NY.