Class III milk futures at the Chicago Mercantile Exchange were down on profit taking and the recent lack of direction from the cash market. October was $.19 lower at $16.61, November was down $.25 at $16.09, December was $.32 lower at $15.75, and January was down $.30 at $15.37.
Cash cheese blocks were unchanged at $1.72. Two loads were sold, one at $1.72 and one at $1.7225. Barrels were $.0325 lower at $1.6475. 10 loads were sold, including one at $1.6475 and three at $1.6575. The last unfilled bid was on one load at $1.6475. The last uncovered offer was for one load at $1.65.
Butter was down $.04 at $2.355. One load was sold at $2.36. The last unfilled bid was on two loads at $2.34. The last uncovered offer was for one load at $2.355.
Nonfat dry milk was $.01 lower at $.7575. Four loads were sold, including one at $.7575. The last unfilled bid was on one load at $.755. The last uncovered offer was for one load at $.76.
The USDA says the dairy cow slaughter under federal inspection during September 2017 was 249,600 head, 9.4% of the monthly total, and up 4,500 from September 2016. For the year to date, the dairy cow slaughter is 2.236 million head, also accounting for 9.4% of the 2017 total, compared to 2.152 million this time last year.
The USDA’s attaché in New Zealand projects that nation’s 2017 milk supply at 21.5 million metric tons, up 1.3% from 2016, and less than the outpost’s previous guess of 3% because of a wet, cold spring and fewer than expected dairy cows. 2016/17 farm gate prices were up sharply from from 2015/16 and should improve further in 2017/18 thanks to demand expectations. The 2018 supply is seen at 21.6 million metric tons, which would be 0.5% more than 2017. This year’s milk exports are expected to total 3.26 million metric tons, 0.7% less than last year, before rising to 3.32 million next year.
For the European Union, the USDA representative sees 2017 milk deliveries holding close to 2016 levels, with stable cow numbers and better weather in the second half of the year helping production. Cheese production is expected to increase in response to strong domestic and export demand, while butter and nonfat dry milk production is projected to dip because of lower milk availability. E.U. whole dry milk production is expected to hold steady.