Dairy product price forecasts were raised on improving demand, both domestically and in international markets.
Traders brought 55.3 million pounds of product to market, down from 59.2 million in the last event, and the average winning price was $4,081, down from $4,089.
Skim milk powder was up 0.6 percent after inching 0.7 percent higher, and lactose was down 6.5 percent after shooting up 8.6 percent last time.
StoneX Group says the GDT 80 percent butterfat butter price equates to $2.5558 per pound U.S., up 5.2 cents, and compares to Chicago Mercantile Exchange butter which closed on April 9 at $1.88.
Nonfat dry milk/skim milk powder exports hit 157.8 million pounds, up 36.1 percent from a year ago, adjusted for the Leap Day, and up 11.2 percent year-to-date.
Kurzawski admitted that we are comparing against some weaker numbers a year ago and that may account for some of the percentage increases this year.
The discussion of late has been on rising food service demand, he said, and retail demand remains consistent, though he cautioned, “we’re still in this pandemic.
Cash 40-pound block cheddar closed the second Friday of April at $1.83 per pound, up 5.5 cents on the week and the highest it has been since Jan.
The 500-pound Cheddar barrels jumped 10.75 cents on April 9 to close at $1.6925 per pound, up 18 cents on the week and the highest they have been since Nov.
Block and barrel cheese producers reported strengthening food service demand this week, according to Dairy Market News.
Some milk prices were above the previous few weeks, but some were $5 under Class.
Food service cheese demand is trending upwards with some contacts reporting that buyers are purchasing further out to hedge against price increases.
This is up 3.5 cents on the week and the highest it has been since June 11, and 63.25 cents above a year ago.
Butter plant managers say food service sales have maintained strength for three to four consecutive weeks, but retail sales are on a steady seasonal decline.
With considerable production downticks noted in the February Dairy Products report, butter market tones received an additional shot in the arm, says Dairy Market News.
Ice cream, dips, and whips are pulling some fat away from churns, but butter production is active, and inventories remain stable.
It was the highest number recorded since March 12, 2020 which is actually the day before Covid was declared a national emergency.
Much of this increased output is being fueled by a larger milking herd which increased to 9.458 million cows in February, up 3,000 from January and 81,000 more than a year ago.
Total cheese stocks rose to 1.436 billion pounds at the end of February, up 27.8 million from January and well above the seasonal average build between January and February of 16.7 million pounds,” the Margin Watch reported.
Cooperatives Working Together member cooperatives accepted nine offers of export assistance this week from CWT that helped them capture sales contracts for 304,238 pounds of cheddar cheese, 56,116 pounds of butter, and 191,802 pounds of cream cheese.
CWT’s 2021 exports now total 11.865 million pounds of American-type cheeses, 8.8 million pounds of butter , 3.6 million pounds of anhydrous milkfat, 13.5 million pounds of whole milk powder, and 4.4 million pounds of cream cheese.