USDA Report Highlights for the Week Ending March 8: more milk into industry channels
Source: The DairyNews
In the latest USDA report covering the period from March 1 to March 8 revealed key insights into the pricing and demand trends for various dairy products.
Butter Market Overview:
- Grade AA butter closed at $2.8025, with a weekly average of $2.8115 (+$0.0100).
- Demand for butter varies across regions, with the Central region experiencing steady demand, the East noting stronger demand ahead of spring holidays, and the West indicating strong to steady retail demand.
- Cream availability is generally abundant, but some stakeholders report tightening cream supplies compared to recent weeks.
- Unsalted butter inventory is tight for Q1/Q2 spot purchasing, with bulk butter overages ranging from 3 to 12 cents above market across all regions.
- Barrels closed at $1.4875, and 40# blocks at $1.4600, with weekly averages of $1.5860 (-$0.0760) for barrels and $1.4920 (-$0.1020) for blocks.
- Eastern U.S. cheese plant managers report steady production schedules, with block cheese demand described as light.
- Retail demand is steady, and an increase in demand is anticipated for the spring holidays.
- Central region cheesemakers note a pickup in cheese demand, with strong sales expected by the end of March.
- Spot milk prices in the West are reported as low as $3.50-under Class III, with steady cheese production schedules.
- Milk production is seasonally higher, with weather conducive to cow comfort pushing more milk into industry channels.
- Class I demand has eased with the approach of spring break, leading more milk to alternative classes.
- Spot milk prices in the Upper Midwest range from $3.50-under Class to $1-over.
- Condensed skim availability is growing, and plant downtime contributes to increased milk availability.
- Cream availability remains high, but demand from the Class II sector is starting to impact overall cream availability.
- Low/medium heat nonfat dry milk (NDM) prices face bearish pressure due to quiet demand in recent weeks.
- High heat NDM prices vary across regions, with steady to higher prices in the Central/East and steady to lower prices in the West.
- Dry buttermilk prices remain unchanged in the Central and East regions but move lower in the West.
- Condensed buttermilk availability is robust in the Central/East, supported by active churning and ample cream availability.
- Dry whole milk prices move higher due to noted tight inventories.
- Dry whey prices remain steady to lower in all regions, with uncertain market tones moving deeper into Q2.
- Whey protein concentrate 34% and lactose prices are steady to higher, while acid and rennet casein prices move lower.
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