Butter Prices Rise While Cheese Prices Fall in USA

USDA released their monthly Dairy Products report on Friday with results showing total cheese production at 1.229 billion, down 0.2% vs. last year.  American-type cheese production stood at 499 million for March, up 3.2% year-over-year.  Butter totaled 205 million, 1.4% stronger compared to the year prior.  Nonfat dry milk and skim milk powder production was also 0.6% higher.  Dry whey lost 3.5% when compared to that same time period and came in at 73 million.

The CME spot dairy index was all over the board.  Butter and nonfat dry milk rose in value while both cheese contracts and whey fell.  Butter closed at $2.445/lb, up a quarter cent.  Nonfat gained a half cent to $1.1975 as four loads traded hands.  Cheddar blocks declined 5.25 cents to $1.6125/lb.  Nineteen loads exchanged hands.  Barrels fell 1.75 cents to $1.53/lb.  Dry whey was off a penny as 10 loads traded.

Class III milk futures were unchanged to slightly lower on Friday.  May lost 11 cents while June came in 7 softer.  The second half of 2023 ranged from even to a couple cents lower.  Class IV markets ranged from 5 lower to 8 cents higher on Friday.