Milk production and plant receipts are basically flat this week in many areas of the country.
Production has surpassed the seasonal lows and should slowly improve as time progresses. Demand is good with increased milk supply during last year being used up quickly. Manufacturers will welcome the extra milk that will be available to them during the Thanksgiving holiday.
For the week ending Nov. 22, Cheddar blocks closed at $1.8350, up 1.50 cents. Barrels closed at $1.7550, down 0.25 cents. Butter increased 3 cents to $1.68 and the highest price since May 2. There were 2 loads of blocks, 2 loads of barrels and 7 loads of butter traded. Nonfat dry milk prices continued to improve with Extra Grade increasing 7.50 cents to $1.9750 and Grade A increasing a penny to $1.9850.
Milk production gains
USDA indicated milk production in the top 23 states increased 1.2 percent from last year. Cow number declined 2,000 head. U.S. milk production increased 1.0 percent. Milk per cow increased 15 pounds to an average of 1,785 pounds. Cow numbers in the country remain 13,000 head above last year. Growth is coming from production per cow and not an increase in cow numbers. There were 6 of the top 23 states that posted negative production. These states were: Idaho, down 2.7 percent; Missouri, down 2.7 percent; Ohio, down 1.8 percent; Illinois, down 1.3 percent; New Mexico, down 0.6 percent; and Minnesota, down 0.3 percent.
The greatest percentage gain of milk production took place in Kansas with production up 6.1 percent followed by Iowa, up 5.7 percent; Florida, up 5.0 percent; Utah, up 5.0 percent; and Arizona, up 4.1 percent. All other states showed gains of less than 4.0 percent.
Stocks above last year
The October “Cold Storage” report showed American cheese stocks declining 31.8 million pounds totaling 629.2 million pounds. Supply is still 3 percent above last year. Swiss cheese stocks declined 2.3 million pounds to 27.7 million pounds, down 8 percent from last year. Other cheese stocks declined 12.4 million pound totaling 367.3 million pounds, up 4 percent from last year.
This put total cheese stocks at 1.024 billion pounds, down 47.0 million pounds and 3 percent higher than last year. Butter stocks declined substantially with inventory at 173.8 million pounds. This was down 59.2 million pounds from last month, but up 20 percent from last year. It seemed as if butter stocks would decline to the level they ended last year, but the comparison of this month with last month gives the impression this may not happen.
GDT auction results
The Global Dairy Trade auction trade weighted average increased 0.1 percent from the previous event. Whole Milk powder price was unchanged at $4,870mt or $2.21 per pound. Skim Milk Powder increased 0.7 percent to $4,583mt or $2.08 per pound. Anhydrous Milk Fat declined 1.6 percent to $5,255mt or $2.38 per pound. Butter price increased 1.7 percent to $3,583mt or $1.63 per pound. Cheddar cheese price increased 4.5 percent to $4,584mt or $2.08 per pound and Buttermilk Powder was down 0.1 percent to $4,753mt or $2.16 per pound.
AMS prices
For the week ending Nov. 16, Agricultural Marketing Service (AMS) prices were higher. Prices for 40-pound cheddar blocks increased 2.0 cents to $1.88. The price for 500-pound barrels, adjusted to 38 percent moisture, averaged $1.86, up 1.1 cents. USDA grade AA butter averaged $1.50 for the week, up 1.9 cents. Nonfat dry milk averaged $1.89, up 1.1 cents. Dry whey averaged 57.7 cents, up 0.5 cents.
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Source: Agriview