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Milk production, stocks weigh on markets

MARKETS: Milk production, stocks weigh on markets
The cash dairy markets must not have liked what they saw in Friday’s June Milk Production report, according to DairyBusiness Update associate editor Lee Mielke. Cash block cheese lost 2¢ this morning and is now trading at $1.7275/lb. Barrel dropped 4.25¢, to $1.6975/lb.; 2 cars of each traded hands, with 1 offer of block and 1 bid of barrel left on the board.
The AA butter price plunged 6¢, to $1.43/lb., with 1 trade, 1 bid, and an offer the order of the day.
Grade A nonfat dry milk remained at $1.7750/lb.; Extra Grade held at $1.73/lb.; 1 offer of Grade A was the only activity.
June butter stocks totaled 324.07 million lbs., according to today’s Cold Storage report, up 1% from May but a whopping 33%, or almost 81 million lbs., above June 2012.
American type cheese, at 705.19 million lbs., was down 1% from May, but 6% above a year ago. The total cheese inventory came to 1.149 billion lbs., unchanged from June but 5% ahead of a year ago.
Today’s market closing prices:
Class III milk: -3¢ to -37¢ through December 2013. Based on current CME closing prices, the July-December 2013 average is $18.14/cwt.; and the 2014 average is $17.31/cwt.
Butter: down 6¢, to $1.43/lb.
Cheddar blocks: down 2¢, to $1.7275/lb.
Cheddar barrels: down 4.25¢, to $1.6975/lb.
Grade A nonfat dry milk: unchanged at $1.7750/lb.
Extra Grade nonfat dry milk: unchanged, at $1.73/lb.