Mielke’s Market Daily
Mielke’s Market Daily
(A daily wrap-up of dairy markets and the things affecting them, from DairyBusiness Update associate editor Lee Mielke)
The October World Agricultural Supply and Demand Estimates report, scheduled for release tomorrow afternoon will not likely happen due to the shutdown. However federal order milk prices will still be announced. The November federal order Class I base will be announced on Tuesday, Oct. 23, with the Class II, III and IV prices on Oct. 30.
The Chicago Mercantile Exchange’s latest communication on their website:
It is currently our understanding that going forward the Upper Midwest Federal Order will continue to release both the weekly and monthly prices as scheduled. Therefore, it is our intention that the final settlement of the CME Milk (Class III & Class IV), Cheese, Butter, Whey and Nonfat Dry Milk futures and options contracts will occur on Wednesday, Oct. 30, 2013, as scheduled.
In order to access the weekly and final settlement data for the October contracts, please see your Federal Milk Order website. If your Federal Marketing Order does not have the information, you can link to the Upper Midwest Order at http://www.fmma30.com
There will be no November California Class I milk price announcement, which would have been announced tomorrow from the California Department of Food and Agriculture. That has nothing to do with the Federal government shutdown but is simply being delayed until October 22 as a result of the recent milk price hearing in Sacramento.
Cash cheese prices were bid higher this morning, according to DairyBusiness Update associate Editor Lee Mielke. The blocks were up 1¢, following yesterday’s 1.25¢ gain, and are now trading at $1.7825/lb. The barrels gained 1.25¢, following yesterday’s 1.75¢ rise, and hit $1.7525/lb. Two unfilled bids of block and one of barrel was the only activity.
Butter stopped two days of decline totaling 8.5¢ and held at $1.53/lb. this morning. There was no activity.
Grade A nonfat dry milk remained at $1.8450/lb., with no activity, but 1 bid of Extra Grade took the price 2¢ higher, to $1.80/lb., the first trading activity since September 20 and the first price change since August 22.
Today’s market closing prices:
Butter: unchanged, at $1.53/lb.
Cheddar blocks: up 1¢, to $1.7825/lb.
Cheddar barrels: up 1.25¢, to $1.7525/lb.
Grade A nonfat dry milk: unchanged, at $1.8450/lb.
Extra Grade nonfat dry milk: up 2¢, to $1.78/lb.
Class III milk: mixed to mostly slightly higher through October 2014. Based on current CME closing prices, the Q4 2013 average is $17.99/cwt.; with an overall 2013 average of $17.81/cwt.; and a 2014 average of $16.87/cwt.