MD_DA950 Dairy Markets at a Glance Report 30 - Released on July 29, 2022 CME GROUP CASH MARKETS (7/29) BUTTER: Grade AA closed at $2.9900. The weekly average for Grade AA is $2.9650 (+0.0345). CHEESE: Barrels closed at $1.8875 and 40# blocks at $1.8800. The weekly average for barrels is $1.9235 (-0.0665) and blocks, $1.9240 (-0.0250). NONFAT DRY MILK: Grade A closed at $1.6400. The weekly average for Grade A is $1.6620 (-0.0115). DRY WHEY: Extra grade dry whey closed at $0.4450. The weekly average for dry whey is $0.4515 (-0.0115). CHEESE HIGHLIGHTS: Milk is available for active cheese production throughout the country. Some contacts in the Northeast and Midwest are wary of taking on additional milk loads and potentially building inventories. Retail demand for cheese continues to soften in the Northeast, as weaker consumer demand is causing some grocers to reduce cheese orders and/or limit the number of products offered. Food service demand is also declining in the Northeast; some restaurants in the region are reducing their menu offerings and limiting their operating hours. In the Midwest and West, domestic demand for cheese is steady this week. Some contacts in the West note that domestic sales are below forecasted levels and cite higher prices as contributing to reduced consumer purchasing. Contacts in the West say that international demand for cheese remains strong. Cheese inventories are available in both the Northeast and West. BUTTER HIGHLIGHTS: Cream availability is tightening throughout the country. Contacts in the West say milk output and cream production are decreasing due to seasonally higher temperatures in parts of the region. New butter production is limited in the Central region. In the Northeast and West regions, butter output is declining as labor shortages are curtailing some production facilities' operating capacity. Butter inventories are tight in the Northeast and Central regions. Some Central region contacts say they are sourcing loads of butter from the West. Retail demand for butter is softening in all regions, and food service sales are slowing in the Northeast and West. Meanwhile, contacts in the Central region have reported a spike in food service sales this week. Stakeholders say bulk butter sales are strong in the West, as some purchasers are concerned that inventories will tighten in the coming months. Bulk butter overages range from 2 to 15 cents above market, across all regions. FLUID MILK: Aside from a few parts of the Pacific Northwest, milk production is trending steady to lower. Hot, dry weather is reducing cow comfort and pushing farm output and milk components downward. That said, milk loads are generally available for most processing needs, and, where it may be tighter, manufacturers can get a few loads shipped in from nearby regions. Class I milk demand is mixed. Some handlers report cuts from bottlers, but there are a few regions of the country where educational institutions are preparing for the start of school and making requests to refill the school milk pipelines. There is strong demand for condensed skim milk in the West. As milk output and components have withered in the summer heat, cream availability has become tighter. However, cream demand has picked up and cream prices are supported. Cream multiples for all Classes are 1.36 - 1.44 in the East, 1.31 - 1.44 in the Midwest, and 1.08 - 1.36 in the West. DRY PRODUCTS: Prices for low/medium heat nonfat dry milk are lower this week. Contacts report quiet spot market demand. High heat nonfat dry milk prices are down in the West but held steady in the Central and East on limited spot trading. Dry buttermilk prices are steady to lower, and demand is softening. Dry whole milk tones are quiet, and prices are unchanged. Dry whey prices are largely lower, aside from the top of the Western whey price range that moved higher. Animal feed whey prices are steady to lower. The overall market tone for dry whey is bearish. Prices for whey protein concentrate 34% are steady to lower. Availability, demand, and prices vary widely based on brand and application. Lactose prices are unchanged amid steady demand. Rennet and acid casein prices are unchanged, with quiet summertime trading. ORGANIC DAIRY MARKET NEWS: Federal Milk Market Order 1, in New England, reports utilization of types of organic milk by pool plants. During June 2022, organic whole milk utilization totaled 15.3 million pounds, down from 16.6 million pounds the prior year. Meanwhile, June 2022 butterfat content, 3.28 percent, declined .01 percent from last year. Utilization of organic reduced fat milk, 16.2 million pounds, declined from 18.9 million pounds a year ago, and the butterfat content, 1.39 percent, declined .01 percent over last year. The July 2022 in-store retail surveys of selected supermarkets in twenty-nine U.S. cities show the retail prices of organic whole milk in the half gallon container. The prices ranged from $3.59 in Detroit, MI, to $6.49 in Pittsburg, PA. The July 2022 simple average price increased to $4.66, up 3 cents from the simple average price the previous month. NATIONAL RETAIL REPORT: Total conventional dairy ads jumped 163 percent this week, and organic dairy ads are up 84 percent. The most advertised dairy item is conventional butter in a one-pound package. Conventional yogurt ad numbers increased 173 percent. Conventional yogurt in 4 to 6-ounce containers is the most advertised conventional yogurt item. Conventional cheese advertisements are up 88 percent. This week's most advertised cheese item is conventional 8-ounce shred cheese. Total conventional milk ads surged 607 percent. Milk in gallon containers is the most advertised conventional milk item this week, with 657 percent more ads than last week. The national weighted average advertised price for conventional milk half gallons is $2.66, compared to $5.38 for organic milk half gallons, providing an organic price premium of $2.72. Organic half gallon milk is the most advertised organic item. JUNE 2022 COLD STORAGE (NASS): Total natural cheese stocks in refrigerated warehouses on June 30, 2022 were down 0.5 percent from the previous month and up 5 percent from June 30, 2021. Butter stocks were up 3 percent from last month but down 20 percent from a year ago. APRIL MAILBOX PRICES (FMMO): In April 2022, mailbox milk prices for selected reporting areas in Federal milk orders averaged $26.22 per cwt, up $1.33 from the March 2022 average and up $8.99 per cwt from the April 2021 average. The component tests of producer milk in April 2022 were: butterfat, 4.04%; protein, 3.25%; and other solids, 5.78%. JUNE 2022 MARKET SUMMARY AND UTILIZATION REPORT (FMMO): During June, 12.1 billion pounds of milk were received from Federally pooled producers. This volume of milk is 9.3 percent higher than the June 2021 volume. Regulated handlers pooled 3.1 billion pounds of producer milk as Class I products, down 2.0 percent when compared to the previous year. The all-market average Class utilization percentages were: Class I = 26%, Class II = 10%, Class III = 55%, and Class IV = 9%. The weighted average statistical uniform price was $25.97 per cwt, $0.07 higher than last month and $7.95 higher than last year. JULY 2022 RETAIL FLUID MILK PRICES (FMMO): U.S. simple average prices are: $4.40 per gallon for conventional whole milk, $4.35 per gallon for conventional reduced fat 2% milk, $4.66 per half gallon organic whole milk, and $4.66 per half gallon organic reduced fat 2% milk. Information for the period July 25 - 29, 2022, issued weekly Published by: Dairy Market News - Madison, WI CHELSEA ROCHELLE, 608-422-8594 Email: Chelsea.Rochelle@usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (My Market News): https://mymarketnews.ams.usda.gov