Source: USDA
CME GROUP CASH MARKETS (10/29)
BUTTER: Grade AA closed at $1.9400. The weekly average for
Grade AA is $1.9230 (+0.1125).
CHEESE: Barrels closed at $1.8200 and 40# blocks at $1.6750. The
weekly average for barrels is $1.8370 (+0.0130) and blocks, $1.7495 (-
0.0145).
NONFAT DRY MILK: Grade A closed at $1.5575. The weekly
average for Grade A is $1.5440 (+0.0130).
DRY WHEY: Extra grade dry whey closed at $0.6300. The weekly
average for dry whey is $0.6230 (+0.0170).
CHEESE HIGHLIGHTS: Although labor issues persist,
cheesemakers across the country relay busy production schedules as
many plants operate at, or close to, capacity. Spot milk prices are
reported to range from flat Class to $1.00 over Class III this week in
the Midwest. Export interest is steady. Demand is stable to stronger
across food service and retail sectors, although logistics and supply
chain issues are still evidenced by delayed deliveries and/or partial
fulfilment of orders. Block inventories are abundant, but barrels are
less available. Block and barrel prices are still inverted. Cheese market
tones are unsteady.
BUTTER HIGHLIGHTS: Cream is tighter in the East and
Central regions. Stakeholders worked to reallocate loads of Western
cream following an incident that left a large manufacturer offline and
unable to receive deliveries. Some butter makers, limited by higher
cream multiples and staffing shortages, are running lighter production
schedules. Plant managers are prioritizing print production to meet
surging holiday demand, which has contributed to lower fresh bulk
availability and higher bulk prices. Older inventories, however, are still
available to meet near term needs, though contacts say that unsalted
stocks are tighter than salted. Food service sales and retail orders
continue to be steady. Butter market tones are bullish. Bulk butter
overages range from 2 to 13 cents above market this week.
FLUID MILK: The East on the farm milk production is increasing,
and some areas received milk loads from other parts of the region to
supplement their current needs. Bottling is steady to increasing. In the
Midwest, milk output continues to rise with improving milk per cow
numbers. Spot milk prices are higher this week. California milk
production is flat to higher. Class I sales are stable. Arizona milk
output is level to higher. Bottling sales declined. In New Mexico, milk
production is increasing, but Class I demand has dipped. The Pacific
Northwest is seeing less than projected milk output. Class I sales are
steady. Milk production is increasing in the mountainous states of
Idaho, Colorado, and Utah. Bottling orders are lower. Cream
availability is mixed depending on time and location needed. Across
the country, the f.o.b. cream multiple ranges 1.35-1.48 in the East, 1.33
-1.43 in the Midwest, and 1.18-1.38 in the West cream multiple ranges
1.35-1.48 in the East, 1.33-1.43 in the Midwest, and 1.18-1.38 in the
West.
DRY PRODUCTS: The low/medium heat nonfat dry milk market
is steady to higher in the mostly series across regions. The market has
not been too hesitant to pay higher prices for availability. Mexico is
showing steady interest. Dry buttermilk prices are steady to higher in
the East, Central, and West regions. Interest is mixed. Limited
churning factors into tight inventories. Dry whole milk prices are lower
this week. Production is light. Dry whey prices are higher in the East
and West, but steady to higher in the Central region. Demand is stable
as export sales improve. The whey protein concentrate 34 percent
prices are unchanged to higher. Production is mixed as inventories
tighten. Demand is good. Lactose prices are steady to lower. Spot
interest is lackluster. Inventories are growing. Prices of acid and rennet
casein are steady this week.
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