After several weeks of steady gains, prices for dairy commodities on the Chicago Mercantile Exchange took a recess in trading during the past week as Cheddar cheese blocks, AA butter, and Grade A non-fat dry milk all posted losses this week in a busy spot market.
Through Wednesday of this week, 13 carloads of AA butter, 11 of Cheddar blocks, five of Cheddar barrels, and three of Grade A non-fat dry milk had been sold in the spot market in the week's three sessions. These include four carloads of butter and three of Cheddar blocks on Wednesday.
The AA butter price fell by 3 cents per pound on Wednesday to close at $1.63 - down by 6 cents from a week earlier. The day's trading session also included an unfilled bid to buy one carload and an uncovered offer to sell one carload.
There were no price changes on Wednesday for Cheddar cheese as the prices stood at $1.8650 per pound for blocks and $1.7350 for barrels. The block price was down by 4.5 cents for the week but barrels were up by .50-cent.
The Grade A non-fat dry milk spot market price dropped by 3 cents per pound on Wednesday to close at $1.70 in a market day with one carload sale and an unfilled bid to buy one carload. This put the Grade A price on a par with the Grade Extra price at $1.70 per pound.
Prices in the dry whey futures market had a few up and down movements on Wednesday. For the remaining months of 2013, however, the prices are in a tight range of 56.5-58.5 cents per pound.
Red and green ink also appeared in equal frequencies the Class III milk futures on Wednesday for months through June of 2014. Prices dropped by 22 cents per hundred for June and for March of 2014. The top increase was 12 cents per hundred for October of 2013.
Near the end of the day's trading session, prices stood in the $18s per hundred for all remaining months of 2013 except for $19 for August and $19.13 for September. Prices then drop back to the $17s and $16s per hundred for all of 2014.
The national Class III milk cash price for April that was announced last week is $17.59 per hundred. Other prices for the month were $18.73 for Class II and $18.10 for Class IV.
Wisconsin's dairy production statistics for 2012 were reported within the past week. They included a record of 2.78 billion pounds of cheese (up from 2.63 billion in 2011), led by record highs for such types as Hispanic, Muenster, mozzarella, and Italian.
Other highlights of the 2012 production report by the Wisconsin field office of the National Agricultural Statistics Service were a five-year low production of 289 million pounds of dry whey in the state and a five-year high in the production of lactose at 189 million pounds.
On Tuesday, May 7, Cooperatives Working Together announced the receipt of a batch of sic bids from Bongard's Creamery and Darigold Cooperative.
These bids were for financial assistance on the exporting of 1.896 million pounds of Cheddar, Monterey Jack, and Gouda cheese to countries in Asia, the Middle East, and North Africa. Deliveries are scheduled from May-November.