A 5-cent-per-pound jump in the spot market price for AA butter on Wednesday of this week put the day's closing price at $2.35 per pound on the Chicago Mercantile Exchange.
The sale of two carloads constituted the day's activity in the spot market for AA butter. The price increase pushed the gain for the first three days of this week to 11.5 cents per pound.
Five carloads of cheddar block cheese were sold in the spot market on Wednesday as the price remained at $2.0250 per pound. The cheddar barrel price advanced by 1 cent to $2.0425 per pound as the result of an unfilled bid to buy one carload.
The spot market price for Grade A nonfat dry milk stood at $1.8250 per pound as an offer to sell one carload was not covered. Dry whey futures prices remained strong with monthly prices of 67.8 cents per pound for June, 62.3 cents for September and above 50 cents per pound for all subsequent months through August of 2015.
Based on current Class III milk futures prices, there's a potential that the Class III cash prices might extend their record high run by another four months — through October and possibly November.
There was little price movement in the Class III futures on Wednesday of this week, but gains in earlier trading sessions pushed the prices for nearby months above the previous Class III cash price records for those months.
On Wednesday of this week, the record high Class III futures prices included $21.31 per hundred for June, $21.75 for July, $21.74 for August, $21.67 for September and $21.48 for October. The $21.82 for the November futures was only 1 cent below the record high Class III cash price for the month.
For 2015, the Class III futures on Wednesday were in a gradual downward arc from the high of $19.54 per hundred for January to the $17.95 for December.
The Class I fluid milk national base price for July also posted an increase. The $23.02 per hundred is 16 cents more than the June Class I price.
On Tuesday of this week, Cooperatives Working Together announced the receipt of 5 bids for financial assistance on the export of 2.315 million pounds of 82 percent butter, 1.574 million pounds of whole milk powder and 158,733 pounds of cheddar and gouda cheese.
Those bids came Dairy Farmers of America, the Michigan Milk Producers Association and the Northwest Dairy Association (Darigold). They plan to ship the products to buyers in Asia and the Middle East from June to November.