Dairy Markets Week in Review
The cash dairy markets anticipated a more bullish milk production report and continued to strengthen the week of August 14. Block cheese closed that Friday at $1.24 per pound, up 4 cents on the week, but 23 cents below a year ago. Barrel closed at $1.2425, up 5 cents on the week, but 23 3/4-cents below a year ago. 18 cars of block traded hands and 11 of barrel. The NASS U.S. average block price hit $1.1622, up 1.9 cents. Barrel averaged $1.1492, up 0.6 cent.
Butter closed Friday at $1.2850, down a half-cent on the week, and 41 1/4 cents below a year ago. 43 cars were sold. NASS butter averaged $1.2146, up 6.1 cents.
There’s encouraging news in fluid milk, according to the CME’s Daily Dairy Report (DDR). After consecutive years of declines, fluid milk sales were up 1.4 percent in the first half of 2006, according to Federal order and California data. The DDR adds that, if this pace continues, this could be the third time in the last 20 years that fluid sales increased at least 1 percent from the previous year.
Provided courtesy of Dairyline.