Milk futures were higher – contracts covering the first half of the year increased 8¢ to $17.18. APR and MAY settled at new highs. Butter, whey and NDM futures were mixed. Manufacturing milk supplies are seasonally heavy, and orders have slowed over the holiday period. Butter churning activity is rising to its seasonal peak.

Cheese and butter sales improved in October, according to USDA “Commercial Disappearance” data. In the August-October period, commercial cheese use was up 1.8 per cent from the prior year (see chart) and butter use was up 12.7 per cent. For the year, sales of cheese and butter are up 3.1 per cent and 10.7 per cent, respectively. This has helped counter the decline in fluid milk sales, which were off 1.4 per cent in the first 10 months of the year.

Corn futures increased for the eighth straight day on concerns that hot, dry weather will curb the Argentine crop. MAR corn settled at $6.42/bushel today, up more than 60¢ since 16 December.

Further Reading