BUTTER: Grade AA closed at $2.1725. The weekly average for Grade AA is $2.1931 (-.0054).
CHEESE: Barrels closed at $1.7425 and 40# blocks at $1.9975. The weekly average for barrels is $1.7375 (+.0450) and blocks, $1.9700 (+.0725).
NONFAT DRY MILK: Grade A closed at $1.0475. The weekly average for Grade A is $1.0469 (+.0054)
DRY WHEY: Extra grade dry whey closed at $.3950. The weekly average for dry whey is $.3925 (+.0005).
CHEESE HIGHLIGHTS: The most notable topic among cheese contacts is the continued strength of the cheese market prices, particularly block cheese prices on the CME which neared $2.00 this week. Even with cheese market prices showing strength, cheese producers are reporting positive sales results. Schools returning and football season are noted as factors in improved sales. Post-holiday cheese production is steady. Milk, although more is moving into Class I due to schools reopening, is available for most cheese production needs. Reported spot milk prices ranged from $.50 under to $1 over Class. Hurricane Dorian kept some Midwestern/Mideastern milk inside the region, as plants in the Southeast area are down. Cheese availability varies regionally and by variety.
BUTTER HIGHLIGHTS: Churning schedules for cream have varied throughout the country during this shortened holiday week as some butter plants have partially closed, while others have been processing at full capacity. In general, print/bulk butter production is seasonally growing, while supplies continue building into cold storage ahead of the upcoming fall/winter needs. This week, bulk butter pricing varies among the regions: East, 5.0 cents to 8.0 cents over the market; Central, 0.0 to 4.25 cents above the market; West, 0.0 cents to 7.5 cents over the market, with various periods and averages used.
FLUID MILK: Hurricane Dorian led to cuts in both farm milk production and dairy plant production in parts of the Southeast. Midwestern milk suppliers relayed more milk was kept in the Central area due to the storms. Farm milk output is showing a little strength in cooler upper-Midwest temperatures. The same increases can be said for the mountain states of Idaho, Utah and Colorado. In parts where warmer temperatures remain, such as Arizona, milk yields are flat to lower. That said, milk is generally plentiful for most needs across the country. Class III spot milk in the Midwest was reported from $.50 under to $1 over Class. Cream has become widely available. As ice cream production scales back, butter churners are taking advantage of affordable post-holiday cream prices. Some contacts suggest availability may settle later this week or early into next week. Feed stores, after the historically wet planting season, are a concern for parts of the Midwest and Central areas.
ORGANIC DAIRY MARKET NEWS: The September 2019 farm gate organic milk pay price of a national organic dairy cooperative is $29.24, with a twelve-month average price of $31.30, based on 12.9 percent total solids. The organic pay price is the amount accepted by organic dairy producers who contract with a large national organic cooperative, and based on the geographic area where the organic milk is produced and whether it is grass milk. An organic processor has added a new milk package to their line of products. The processor has introduced whole milk and chocolate whole milk in 8oz packages made from raw, renewable wood. As Labor Day has passed, organic retail advertisements dropped 19 percent compared to the prior survey week. Regionally, increases in ads were reported in the Northwest region. However, ad numbers are down 74 percent in the Southeast and down 58 percent in the Northeast regions.