Dairy market news at a glance (April 5-9)

Click here for the complete USDA Dairy Market News for April 5-9

BUTTER: Grade AA closed at $1.8800. The weekly average for Grade AA is $1.8420 (+0.0226).

CHEESE: Barrels closed at $1.6925 and 40# blocks at $1.8300. The weekly average for barrels is $1.5835 (+0.0947) and blocks, $1.7995 (+0.0476).

NONFAT DRY MILK: Grade A closed at $1.2050. The weekly average for Grade A is $1.1930(+0.0105).

DRY WHEY: Extra grade dry whey closed at $0.6300. The weekly average for dry whey is $0.6500 (+0.0056).

CHEESE HIGHLIGHTS: Spring flush levels of milk continue to meet cheese vats throughout the country. Interestingly, spot milk prices increased on the top end according to Midwestern cheese producers. The spot milk range was $5 to $1.50 under Class. During week 14 of 2020, spot milk prices ranged from $5 to $4 under. Cheese plant managers say demand upticks, particularly from the food service sector, are a factor in the increased milk prices. Demand tones from all regions are similar: steady from retail customers to steady/busier on the food service side, as more areas ease COVID-19 related dining/public gathering restrictions. Barrel manufacturers in the Midwest say April/ May customer interest has kept inventories balanced to lighter. Cheese market tones are following demand trends: steadily bullish.

BUTTER HIGHLIGHTS: Cream availability is fairly stable, although there are pockets of tightening supply across the country. Butter operations are seasonally active despite increased cream volumes funneling into production of ice cream, dips, and whips. Bolstered by strong restaurant sales, food service butter demand continues to grow. Retail sales vary across regions. Butter market tones have trended bullishly since the new crop butter rule began on March 1. Across the country, bulk prices are ranging from 1.0 to 8.0 cents above the market this week.

FLUID MILK: Across the U.S., milk supplies are readily available. Throughout the East region, milk production varies from steadily building toward the peak in the Northeast and Mid-Atlantic to beyond the peak in Florida. Central and West milk production shows similar variations. Industry contacts have noted early signs of flush in some states. Class I demand is steady to strong as educational institutions are refilling pipelines post-spring break. Some Class II/balancing operations are receiving heavy volumes of milk. Texas production of the resin needed to make gallon jugs was interrupted by the storms in February, and sourcing the resin is posing some challenges for bottling operations. It is difficult to ascertain the impact this may have on moving milk into retail. Additionally, mechanical issues at Midwestern butter plants and hauling delays in the Southwest were reported this week. Cream supply is tightening in the Central and East. Western cream remains plentiful, and some is being transported out of the region. Condensed skim markets are stable, and some operations are working through steady contract sales. Cream multiples are 1.28 – 1.40 in the East, 1.22-1.34 in the Midwest, and 1.05-1.28 in the West.

DRY PRODUCTS: Low/medium heat nonfat dry milk (NDM) price ranges are higher in the West and steady in the Central and East. The mostly series for all regions narrowed as the lower end of the series increased. Domestic and international demands are being satisfied for the near term. The market tone is steady to bullish. Central and East high heat prices are stable this week; the West range widened at the top and the bottom. Market conditions vary across regions. Dry buttermilk prices are steady to higher. Trading activities are unchanged, and market tones are steady. There are some shipping and container issues in the West region. Dry whole milk trading was active this week, and the top and bottom of the price range both inched up. Domestic markets and prices have felt upward pressure from international bullishness. Dry whey prices increased. Market participants report both international and domestic demand is strong. The market tone is firm. Whey protein concentrate 34% prices are higher. Demand is hearty; inventories vary, but overall, supplies are a little tight. Lactose prices are higher. Manufacturers report that inventories are largely committed, but significant container and shipping challenges persist. Demand for lactose is mixed but has strengthened for standardization. Prices for acid casein and rennet casein are steady.

ORGANIC DAIRY MARKET NEWS: The deadline to meet the certifications and standards for organic imports into Mexico is June 26, 2021. In April, there will be a seminar for information and certification process. Federal Milk Market Order 1, in New England, reports utilization of types of organic milk by pool plants during February 2021. In the organic feed grade corn market, spot trading activities are fairly moderate. The demand for organic feed corn is solid in forward contracting for old and new crop. Organic feed soybean trading activities are moderate with strong buying interests. Forward contracting is active for organic feed and food grade soybeans. There are healthy demands for organic soybean meal. In addition, interests for organic feed wheat are reportedly good. Trading activities and market trends are lighter on all other organic grains at this time.

NATIONAL RETAIL REPORT (DMN): The most advertised dairy item this week is conventional 48 to 64-ounce containers of ice cream. The national weighted average price is $3.22, up $0.05 from last week. There are no ads for organic 48 to 64-ounce ice cream. Conventional 8 oz. cream cheese has an average price of $1.72, down $0.02 from last week. Organic 8 oz. cream cheese has an average price of $2.50, resulting in a $0.78 organic price premium.