That was a long time ago. So, the higher butterfat test had the impact of lowering the base price down when adjusted to a 3.5 percent butterfat level. This suggests that the BFP could fall more next month. Because the November base month price will likely fall from October levels and we will have another negative price adjustment since cheese prices fell between November and December. The cash market at the CME showed little change from the week before.
Cheese prices are basically at support.
No cheese went into the price support program this week. Western prices are about 2-4 cents per pound lower. Milk production during this period was up 3.2 percent. However, consumption of dairy products was up 11.4 percent for butter, 17.0 percent for American cheese, 8.1 percent for other cheese, 16.0 percent for nonfat dry milk, and 1.3 percent for fluid milk. This is tremendous growth for the dairy industry.