USDA Section 32 milk and butter purchase program announced
The U.S. Department of Agriculture (USDA) has announced plans to purchase $60 million in Fresh Fluid Milk and $50 million in butter for distribution to various food nutrition assistance programs. Purchases will be made under the authority of Section 32 of the Act of August 24, 1935, with the purpose to encourage the continued domestic consumption of these products by diverting them from the normal channels of trade and commerce.
Thanks to this announcement, prices for dairy commodities rose, with butter gaining over 4 cents to $1.5250 and blocks and barrels rising also on the CME.
Milk prices jumped with January milk climbing 41 cents to $16.13/cwt, with February following the trend, rising another 40 cents to $16.82/cwt.
Product timelines include: Quarter 1 - fluid whole milk; Quarter 2 - 2% fluid milk; Quarter 3 - 1% fluid milk; Quarter 4 - butter.