Aug. 22, 2008
Commodity Markets: CME and California Plants
Estimated Producer CWT. Prices
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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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