Lee Mielke: Monthly Dairy Prices 6-11-12 | TheFencePost.com

Lee Mielke: Monthly Dairy Prices 6-11-12

Lee Mielke
Mielke Productions

The May Federal order benchmark Class III milk price was announced at $15.23 per hundredweight (cwt.), down 49 cents from April, $1.29 below May 2011, $2.64 above California’s comparable 4b cheese milk price, and equates to about $1.31 per gallon. That put the 2012 Class III average at $15.96, down from $16.65 at this time a year ago, and compares to $13.57 in 2010 and $10.23 in 2009.

Looking ahead, Class III futures settled Friday as follows: June, $15.62; July, $15.93; August, $15.80; September, $15.98; October, $16.12; November, $16.00; and December, $15.95.

The May Class IV price is $13.55, down $1.25 from April and a whopping $6.74 below a year ago. Its 2012 average now stands at $15.24, down from $18.86 at this time a year ago.

The AMS surveyed cheese price averaged $1.5215 per pound, down 1.5 cents from April. Butter averaged $1.3657, down 9.8 cents. Nonfat dry milk averaged $1.1551, down 9.6 cents, and dry whey averaged 53.89 cents, down 5.3 cents.

Looking “back to the futures;” after factoring in the announced Class III milk prices and the remaining futures, the average Class III milk price for the first six months of 2012 stood at $15.65 on March 2, $15.70 on May 10, and $15.94 on May 25. The last half of 2012 was averaging $15.95 on April 20, $15.61 on April 27, $15.08 on May 4, $15.44 on May 11, $15.69 on May 18, $16.13 on May 25, and $15.96 on June 1.

The cash dairy markets saw more strength the final week of the month with 40-pound block cheese closing Friday June 1 at $1.65 per pound, up 8 cents on the week, but 40 cents below a year ago when they jumped 24 cents, to $2.05. The 500-pound barrels closed at $1.5325, up 6-1/4-cents on the week and 42-3/4-cents below a year ago. Only two cars of block traded hands on the week and four of barrel. AMS-surveyed block cheese averaged $1.5210, across the U.S., down 0.6 cent. The barrels averaged $1.4932, up a half-cent.

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Cash butter saw a fourth week of gain, closing Friday at $1.40, up 1-1/4-cents on the week but 74-1/4-cents below a year ago. Six cars traded hands. AMS butter averaged $1.3450, up a penny from the previous week.

Cash Grade A nonfat dry milk closed Friday at $1.1850, up 3 cents on the week on 11 cars traded, while Extra Grade remained at $1.09. AMS powder averaged $1.1317, down 1.3 cents, and dry whey averaged 52.4 cents, down 1.8 cents.