Weekly Prices and Commodity Market UpdatesAug. 6, 2010
|Average||AA Butter||NFDM||40# Blocks||Barrels||Dry Whey|
|Aug. 6 Price||$1.8500||$1.1432||$1.6025||$1.5675||$0.3788|
|Change for Week||Up 3 1/2 cents||Down 1 24/100 cents||Unchanged||Up 1 cent||Unchanged|
August 6, 2010
6 sales, 4 bids unfilled, 2 offers uncovered. The CME cash butter price gained 1 cent for the week. The market remains firm and continues to increase to levels not seen since December 2004. Tight supplies of cream and good demand for available cream have reduced butter production. Most butter producers continue to get their regular supply of cream from ongoing sources, but are having difficulty locating additional volumes. Butter inventories are often much lighter than they have been in recent years for this time of the summer. Retail prices are now reflecting higher prices and retailers are waiting to see how consumers respond.
0 sales, 1 bid unfilled, 1 offer uncovered. Blocks prices were unchanged this week. Commercial demand is generally steady. Interest is steady to occasionally improved for mozzarella as firms start to prepare for the return of students and stronger pizza sales. Packagers and processors with government contracts are delivering heavier contracted volumes, much to resupply schools. Cheese production is still lower as summer heat reduces milk receipts and components. Current cheese supplies are tightening seasonally.
Continued hot summer weather through most of the country is causing reduced plant intakes and lower components in incoming milk volumes. Generally milder weather in California has had minimal impact on milk receipts in the state.
Nonfat dry milk market and prices remain weak as manufacturers try to clear accumulating inventory while interest is light. Export interest is light to fair with low to moderate volumes moving. Additional weakness in the skim milk powder markets internationally are noted in the gDT auction prices. Stocks are moderate to heavy and are mostly building.
Source: USDA Dairy Market News