Milk futures lower, cash trade mixed
Milk futures on the Chicago Mercantile Exchange ended the week in the $16 range as increasing feed costs, stocks and production weighed on markets.
August Class III milk unchanged at $15.98. September down 31 cents at $16.76. October 36 cents lower at $16.54. November down 11 cents at $17.04. December through February contracts five cents lower to two higher.
Dry whey down $0.0050 at $0.50.
Blocks unchanged at $1.75.
Barrels down $0.0675 at $1.4025. Six trades were made from $1.40 to $1.4275.
Butter up $0.0075 at $1.7075. One trade was made at $1.7150.
Nonfat dry milk up $0.0075 at $1.2925. Two trades were made at $1.2925 and $1.2950.
Increasing dairy exports are helping to support an increase in 2021 and 2021 ag exports.
Dairy exports in USDA’s August quarterly forecast for this fiscal year are projected to increase by $300 million to $7.3 billion as higher prices and volumes of skimmed milk powder, whey and whey products head to China.
The USDA forecasts dairy product exports up $200 million for the 2022 fiscal year to $7.5 billion. Stronger demand for nonfat dry milk powder and cheese by Mexico and Asia are the main drivers.
The USDA says total ag exports are on pace for a record year in 2021 and 2022.