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August 22, 2008
Butter
9 sales, 2 bids unfilled, 2 offers uncovered. Butter
saw a 3.5-cent loss for the week following a 0.5-cent loss the prior week.
Churning activity across the country is seasonally active, depending on
cream availability and pricing. Class II cream demand, especially for ice
cream, is edging lower, thus a little more cream is available for butter. In
many instances, butter production continues to trail needs and inventoried
stocks are being drawn down. Butter demand is starting to show seasonal
buying pattern adjustments. Orders from food service and vacation areas are
slowing while retail orders are somewhat stronger.
Cheese
42 sales, 4 bids unfilled, 30 offers uncovered.
Cheese saw a 4.75-cent loss this week following a 0.75-cent loss last week.
The cheese market is unsettled and sizeable current cheddar offerings
continue to add pressure to the CME Group cash cheese market. Many buyers
are taking advantage of prices around 60 cents below the 2008 peak to
restock at current prices. As more schools reopen for the new school year,
more milk is being taken from cheese production, tightening current
supplies.
Milk Production
Production is at seasonally lower levels, but
reported as steady in many parts of the country, with some exceptions. In a
number of areas, there has been less than normal extreme heat and/or
humidity, which has kept herds more comfortable.
Dry Products
Nonfat dry milk markets are unsettled and weak as
prices trend lower. In many areas, stocks are considered heavier than
desirable, particularly with some buyers holding back and tending to
purchase primarily for immediate needs.
Source: USDA Dairy Market News
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