Dairy Markets Week in Review

Market reaction to USDA’s increased purchase prices was instant Friday morning with block cheese jumping 6 cents and barrels up 7 cents. The block price closed at $1.2850 per pound, up 8 1/2-cents on the week but 2 1/2-cents below the new temporary support price, and 55 cents below a year ago when the blocks tumbled 23 1/4-cents to $1.8350.

Barrel closed out July at $1.26, up 9 cents on the week, 2 cents below the new support price, and 54 cents below a year ago. Only eight cars of block traded hands on the week and seven of barrel. The lagging NASS-surveyed U.S. average price on block cheese inched up 0.3 cent, to $1.12. Barrel averaged $1.1254, up 1.4 cents.

Cash butter closed out the week and the month at $1.2450, down a penny and a half on the week and 33 cents below a year ago. Forty two cars were sold on the week. The price support on butter was not changed. NASS butter averaged $1.2290, up 4.1 cents.

Cash Grade A nonfat dry milk jumped 2 cents Friday, to 91 cents per pound, and Extra Grade gained 2 1/-cents, closing at 90 cents, on two unfilled bids of each. NASS nonfat dry milk averaged 84.99 cents, up 1.3 cents, and dry whey averaged 29.53 cents, down 0.1 cent.

Uncle Sam’s price support program purchased 868,904 pounds of nonfat dry milk on the week but exported 11.9 million via the Dairy Export Incentive Program.

Provided courtesy of Dairyline.