Butter price surge leads spot market
CHICAGO, IL. – With a price jump of 12 cents on Wednesday of this week in the spot market at the CME Group, AA butter had gained a total of 23.75 cents in value per pound from a week earlier.
As eight carloads of AA butter were sold in the spot market on Wednesday, the day's price closed at $2.70 per pound. This put the sales total at 17 carloads for the first three days of the week.
Grade A non-fat dry milk ticked up .75 cent to Wednesday to close at 90.75 cents per pound. Six carloads were sold during the day's trading session.
The price gap between Cheddar cheese blocks and barrels continued to increase on Wednesday. There was no activity in the block market through Wednesday of this week, leaving the price at $1.63 per pound for the fifth consecutive trading day.
Cheddar barrels lost 1.25 cent on Wednesday to close at $1.4025 per pound. Eight carloads were sold to boost the week's total to 23 sales. An offer to sell one carload was not covered.
Dairy futures markets
In early afternoon trading on Wednesday, Class III milk futures prices had single digit per hundred changes for most months except for a 10-cent pickup for June of 2018. The June 2017 price of $16.31 per hundred was the lowest on the trading board.
Prices then rise to $16.60 for July and into the $17s per hundred for August through December of this year. For all months from January 2018 through May of 2019, prices stood in the upper half of the $16s per hundred.
Dry whey futures were slightly lower on Wednesday for the several months in which trades were made. Prices ranged from the high of 48.325 cents per pound for June 2017 to a low of 37 cents for August of 2018.
May PPD at 8 Cents
The producer price differential for May in the Chicago base zone for federal milk marketing Order 30 is 8 cents per hundred. This converts to a minus 12 cents per hundred at the most distant milk receiving plants in Order 30, which covers most of Wisconsin and parts of adjacent states.
The announcement early this week indicated that nearly 2.458 billion pounds of milk were pooled in Order 30 for May. Of the pooled milk, 11.4 percent was used in Class I (fluid milk bottling), 7.9 percent in Class II (soft dairy products), 75.4 percent in Class III (cheese production), and 7.9 percent in Class IV (butter and milk powders). The pooled milk had component averages of 3.79 percent butterfat, 3.08 percent protein, and 5.76 percent other solids.
Cooperatives Working Together has announced the receipt of requests for financial assistance on six contracts to export 548,951 pounds of Cheddar, Gouda, and Monterey Jack cheese to buyers in Asia and Oceania for delivery by September.