Futures price gains a highlight

CHICAGO, IL

The highest Chicago Mercantile Exchange spot market prices for dairy commodities in nearly four months sparked significant Class III milk futures price gains on Wednesday of this week.

In late morning trading, those gains ranged from 58 to 28 cents per hundred for the final six months of 2016. This also triggered the trading of 720 futures contracts for July and 346 for August by mid-day on Wednesday.

Trading prices available on late Wednesday morning were a low of $13.27 per hundred for June, a jump to $14.36 for July, and $15s per hundred for all subsequent months through March of 2018.

Similar activity sparked early day trading in the dry whey futures market — 18 contracts for July at 27.5 cents per pound and 22 for December at 32.75 cents per pound. Prices ranged from a low of 25.375 cents per pound for June to 34 cents for May through August of 2007.

Commodity prices

The futures prices were supported by a full week of gains for dairy commodities in the spot market. With a 3.25 cent uptick on Wednesday during a trading session of one carload sale and an uncovered offer to sell one carload, the AA butter price stood at $2.1725 per pound — a gain of 10 cents during June.

Cheddar cheese chimed in with price advances on Wednesday. On three carload sales, Cheddar blocks gained 3.75 cents to close at $1.48 per pound while an increase of 3 cents put the Cheddar barrel price at $1.5050 per pound after two carload sales and an uncovered offer to sell one carload.

Grade A non-fat dry milk continued in its recent up and down price trend. It lost .50 cent on Wednesday to close at 78.50 cents per pound after a market session of three carload sales, an unfilled bid to buy one carload, and an uncovered offer to sell one carload.

Milk price data

The national Class III milk base price for milk shipped during May is $12.76 per hundred. This is down from the $13.63 price for April and from the $16.19 for May of 2015.

Payments have been authorized for the March/April period under the federal Margin Protection Program for Dairy. Anyone insured to the maximum of an $8 per hundred margin will receive a payment of 85 cents per hundred while those insured at $7.50 will get a payment of 35 cents per hundred.

Export report

An announcement on Monday of this week by Cooperatives Working Together indicated that Northwest Dairy Association (Darigold) and the Michigan Milk Producers Association are seeking financial aid on six contracts for exporting dairy products on deliveries scheduled until November of this year.

Those products are 659,182 pounds of Cheddar cheese, 104,720 pounds of butter, and 132,277 pounds of whole milk powder. The buyers are in countries in Asia and South America.