As if we don’t have enough issues to be concerned about, farmers are on high alert for the naturally-occurring toxin in corn due to the draught. Trace amounts have been reportedly showing up and could push prices even higher of the reduced supply of untainted crop. The Iowa Department of Agriculture and Land Stewardship will require aflatoxin screening and testing of milk received in Iowa, beginning Aug. 31 and continuing indefinitely.

Cash butter closed the week at $1.84, up 4 cents, but still 16.5 cents below a year ago when it fell almost 9 cents and began a decent that shaved 33 cents off the price before rebounding in early October. Six cars of butter traded hands this week and the AMS butter price averaged $1.7576, up 4.2 cents.

Churning activities across the country are mixed depending on cream availability and price, according to USDA. Students are returning to classrooms, thus school milk bottling schedules are resuming. Standardized cream volumes from increasing bottling schedules are becoming available for cream needs. Class II cream demand remains steady, although typically Class II needs will ease, especially for ice cream, once the Labor Day holiday has passed.

Churning is often not keeping pace with demand, thus inventoried stock is being used. Butter producers that are taking advantage of additional cream offerings and generating butter beyond current needs are clearing the extra production to inventory and “holding those stocks with confidence,” according to the USDA.

Retail orders are often outpacing food service needs as many food service buyers are cutting back as the summer vacation season winds down. Food service buyers, especially in resort and vacation areas, indicate that traffic flow through their operations is slowing, but will hopefully remain fairly stable at least through the Labor Day holiday weekend. 

DMN warns that milk supplies across the U.S. are short of expected levels due to the recent hot weather and higher feed costs. 

California production has leveled off, but remains short of full processing needs. Midwest milk volumes have increased with cooler temperatures. Eastern supplies are still tight. 

Cash Grade A nonfat dry milk closed Friday at $1.70, up 3.5 cents on the week, and Extra Grade held all week at $16250. AMS powder averaged $1.2955, up 3.8 cents, and dry whey inched 0.8 cent higher, to 54.76 cents per pound.

Readers with questions or comments for Lee Mielke may write to him in care of this publication.