Dairy Markets At A Glance

Dairy Markets At A Glance

BUTTER: Grade AA closed at $2.4125. The weekly average for Grade AA is $2.3980 (+0.0535).

CHEESE: Barrels closed at $1.5750 and 40# blocks at $1.8625. The weekly average for barrels is $1.5800 (-0.0145) and blocks, $1.8585 (-0.0185).

NONFAT DRY MILK: Grade A closed at $1.2650. The weekly average for Grade A is $1.2455 (+0.0535).

DRY WHEY: Extra grade dry whey closed at $0.4250. The weekly average for dry whey is $0.4250 (+0.0630).
 
BUTTER HIGHLIGHTS:  In all regions cream supplies are readily available for production. Cream multiples are holding somewhat steady in the Central region, while moving lower at the top end in the West. In the East, increased Class II production may be contributing to the rising regional cream prices. Butter makers throughout the country are operating busy production schedules. Butter inventories are outpacing demand in the West, though steady export demand for unsalted butter is keeping unsalted inventories tighter than salted. Spot butter availability varies throughout the East, as some processors in parts of the region are focusing on freezing butter in bulk. Demand for butter is steady to strong in the East from both retail and food service customers. Contacts in the West report soft retail sales for butter and some say demand is well below previously forecasted levels. Bulk butter overages range from 0 to 10 cents above the market, across all regions.
 
CHEESE HIGHLIGHTS: In the Northeast and West, cheese makers are running busy production schedules as they work through available milk supplies. Spot milk prices as much as $10 under Class III were reported again in the Midwest this week, and cheese production remains active. Some stakeholders in the Northeast expressed concern that milk availability may be impacted by a recent cold front that swept through parts of the region. Domestic demand for cheese is mixed in the West: some contacts report steady sales while others relay a decline in recent weeks. In the Northeast, retail demand for cheese is softening, and food service sales are mixed. Northeast pizza makers say pizza sales are strong ahead of the professional football championship game. Demand has shifted from steady to strong for retail cheddar and some Italian style cheeses in the Northeast. Meanwhile, sales of curds and barrels in the region are steady to slower. Cheese inventories are growing in the Northeast, and stakeholders say loads are available for purchasing in the West. Some western contacts report barrel inventories are greater than block inventories and suggest this may be contributing to the current blockbarrel spread on the CME.
 
FLUID MILK: In the Midwest and East, milk output is steady. Areas in the Northeast and Midwest experienced extreme cold temperatures and wind chills, though production was largely unaffected while some hauling obstacles and delays were noted because of ice and precipitation accumulation. In certain locales in the West, milk output is steady to higher, but certain areas in northern California are still reeling from the effects of recent extreme rainfall and milk output is mixed. Mud has persisted, therefore impeding cow comfort. Overall, Class I sales are steady in all regions as school orders are strong. In the Midwest, spot milk prices are $10 under Class III prices. Supply and demand of condensed skim is strong in all regions. Cream is readily available and in demand in all regions, though increased Class II manufacturing has kept multiples steady. F.O.B. cream multiples are 1.17-1.27 in the East, 1.15-1.27 in the Midwest, and 0.95-1.15 in the West.
 
DRY PRODUCTS: Price changes for dairy powder commodities were mixed this week, with renewed market activity for certain commodities and stagnancy for others. In the Central and East regions, both the low/medium heat nonfat dry milk (NDM) price range and mostly series expanded this week, while high heat NDM prices only moved higher at the top of the range. In the East, demand for NDM was reportedly more active this week than in recent weeks. The price range for West low/medium heat NDM increased at the bottom end of the range but decreased at the top end. The West high heat NDM price series expanded. Central and East dry buttermilk demand increased, with brand preferred loads fetching prices at the top end of the range. Prices were unchanged from last week. West dry buttermilk demand is unchanged, and the price range and mostly series slightly decreased. Dry whole milk prices moved lower on the top of the range. For the Central region, the dry whey price range expanded due to scattered availability. East dry whey prices dropped at the top end of the range. The West dry whey price range contracted. Whey protein concentrate 34% prices moved lower. Lactose markets remain bearish and prices dropped for the range and mostly price series. Rennet casein markets remain quiet and prices were unchanged, but acid casein markets remain busy and the prices slipped lower on both ends of the range.