Latest News From Milk Prices

Lock in Risk Reduction in Late Summer
Lock in Risk Reduction in Late Summer

The state of U.S. dairy industry in 2023 may later be recalled as the year of “the correction,” “the valley,” or “the crash,” as milk prices have plummeted by as much as half from record-setting highs in 2022.

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Fall Milk Price Futures Slip

As we move into the end of summer and look ahead to cooler temperatures of fall, most of our commodities have settled in to a tight range.

Milk Prices Climb Higher, Grain Prices Tumble
Milk Prices Climb Higher, Grain Prices Tumble

Class III milk markets were able to return some of the value lost late last week. 

Will Higher Milk Prices Be Sustainable?
Will Higher Milk Prices Be Sustainable?

The seasonal decrease of milk production, higher culling, and inventory of cheese not exceeding the levels of last year, may increase buyer interest on the spot market as they look ahead to later demand.

DMC Payments Surpass $611 Million for the First Half of 2023
DMC Payments Surpass $611 Million for the First Half of 2023

For the first half of the year, nearly $612 million in government payments have been issued, a vastly different picture compared to last year.

Better Days are Ahead
Better Days are Ahead

Bad times don’t last forever. Neither do good days. The mood of the industry quickly changed from an upbeat tone in 2022 to a sad melancholy note this summer.

Butter Prices Get Beat Up
Butter Prices Get Beat Up

Class IV milk saw August fall 13 cents to $18.81/cwt, September fell 19 to $18.91, and October plummeted 39 cents to $18.95/cwt.

Milk Prices Continue Their Rally Higher
Milk Prices Continue Their Rally Higher

Dairy markets resumed their rally on Monday with Class III prices closing 40 cents stronger in the August and September months. 

June’s Dairy Margin Coverage Payment Sets a New Record
June’s Dairy Margin Coverage Payment Sets a New Record

As predicted, a very large Dairy Margin Coverage (DMC) payment is coming to producer’s mailboxes. In fact, June’s DMC income over feed cost calculation set a new record low at just $3.65/cwt.

Milk Prices See a Spark
Milk Prices See a Spark

After giving back some of last week's big gains in Class III Milk, prices bounced back on Friday.

Dairy Report: Low Milk Prices and Higher Beef Prices Take a Hit on Dairy Cow Numbers
Dairy Report: Low Milk Prices and Higher Beef Prices Take a Hit on Dairy Cow Numbers

The USDA failed to deliver good news to dairy producers in it’s recent U.S. Milk Production Report.

Milk Markets Can't Decide Which Direction They Want to Go
Milk Markets Can't Decide Which Direction They Want to Go

Class III markets continue to be confused on which direction they want to go.

Cheese Prices Take a Dramatic Change Higher
Cheese Prices Take a Dramatic Change Higher

Cheese prices made a dramatic turn over the past month as buyers turned aggressive.

Turbulence to Continue in Dairy? Ag Economists Offer Sliver of Hope
Turbulence to Continue in Dairy? Ag Economists Offer Sliver of Hope

July ag economists’ monthly monitor reveals milk price expectations into 2024.

China’s Weakening Economy Spells Trouble for Dairy
China’s Weakening Economy Spells Trouble for Dairy

Changing demographics could eventually diminish China’s Importance in global dairy markets.

Milk Prices Skyrocket Higher
Milk Prices Skyrocket Higher

Class III milk continued its aggressive rally trading limit higher in August, September, October, and November

Dairy Policy Hearing Set to Address the Federal Milk Marketing Order
Dairy Policy Hearing Set to Address the Federal Milk Marketing Order

The hearing, which will take place in the Indianapolis suburb of Carmel, Indiana, could potentially result in the first significant reform of milk marketing orders since 2000.

Leading Dairy Leaders Ready to Participate in FMMO Hearing
Leading Dairy Leaders Ready to Participate in FMMO Hearing

There are 22 proposals for consideration during the Federal Milk Marketing Order system hearing process that will be assembled on Aug. 28 at 9 a.m. EST in Carmell, Ind.

Dairy Farmers Top $1 Billion in Losses from 2018 Farm Bill Change to Class I Pricing System
Dairy Farmers Top $1 Billion in Losses from 2018 Farm Bill Change to Class I Pricing System

The American Dairy Coalition is asking legislators to restore the previous ‘higher of’ pricing method as soon as possible. Here's why.

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June U.S. Milk Production Report Reflects Poor Performance

Phil Plourd with Ever.Ag says that combine miserable weather in key growth areas such as Texas with shrinking farm margins and you get a Milk Production report showing the worst performance that we’ve seen in a while.

Milk Markets Take a Wild Ride Higher
Milk Markets Take a Wild Ride Higher

A limit move-up in September Class III milk came from the result of a bullish milk production report coupled with a second consecutive healthy cheese spot trade.

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What to Do and Not to Do to Endure Financial Tough Times

Producers are challenged paying the bills with the lack-lusting prices that have shown up on milk checks this summer. Dairy financial leaders share tips on what to do and not to do to survive tough financial times.

Multiple-Year Low Margins to Eventually Cut Supply
Multiple-Year Low Margins to Eventually Cut Supply

Those in Class III markets will feel the brunt of some of the lowest prices in years. While relief is coming in the form of lower feed prices, a drop in costs won’t be enough to offset their declining milk checks.

Dairy Prices Fall Further in the Red
Dairy Prices Fall Further in the Red

The roller coaster continues in our commodity markets.

Troubled Waters: Dairy Producers Look to Alternative Profit Sources to Stay Afloat
Troubled Waters: Dairy Producers Look to Alternative Profit Sources to Stay Afloat

With the milk price not looking promising compared to last year, Ben Laine says that taking advantage of some opportunities elsewhere will help producers push past what we hope is the bottom of the milk market in 2023.

Milk Prices Finally Gain Some Ground
Milk Prices Finally Gain Some Ground

All markets seemed to retrace their steps from yesterday's pullback.

USDA Lowers 2023 All-Milk Price Forecast, Milk Production Estimates Remain the Same
USDA Lowers 2023 All-Milk Price Forecast, Milk Production Estimates Remain the Same

The saga of lower milk prices is forecasted to continue for dairy farmers as the USDA once again cut 2023 all-milk price projections in its July World Ag Supply and Demand Estimates (WASDE) report.

Three Cups of Gratitude
Three Cups of Gratitude

Negativity breeds negativity, right? Remember that. But the same can be said about positivity. Positivity can grow if we choose it too. Flip a switch on your mind, that will turn up cheerfulness on the farm. 

High Beef Prices and Low Milk Prices Entice Dairy Farmers to Ramp Up Culling
High Beef Prices and Low Milk Prices Entice Dairy Farmers to Ramp Up Culling

Lower milk prices and higher beef prices are enticing many farmers to cull more dairy cows. But is it making a dent?

A Summer of Uncertainty in Dairy Markets
A Summer of Uncertainty in Dairy Markets

The first half of Summer 2023 in dairy markets will be noted for breaking records, and not in a good way.

Is There Light at the End of the Milk Price Tunnel?
Is There Light at the End of the Milk Price Tunnel?

Lower prices may eventually stimulate exports. However, the current market struggles to find a bottom as supply exceeds demand.

A Summer Miracle - Milk Prices Finally See Green!
A Summer Miracle - Milk Prices Finally See Green!

Cheese found some life the day after the second biggest volume day of Barrels traded on the CME.

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Whey Weighing Heavily on Class III Prices

CME dry whey prices set all-time lows.

Have We Culled Enough Cows to Perk Up Milk Prices?
Have We Culled Enough Cows to Perk Up Milk Prices?

One by one poor-performing cows are exiting herds as lackluster milk price makes it easier for producers to cull cows. The big question remains - have we culled enough cows to boost milk price?

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Post 4th of July Markets Fizzle Out

July 4th fireworks have settled down and so have the markets.

Another Round of DMC Payments Coming: The Lowest Milk Income Margin Ever
Another Round of DMC Payments Coming: The Lowest Milk Income Margin Ever

Another round of Dairy Margin Coverage payments will be coming to producer’s mailboxes, making this the largest payment yet.

Dairy Markets Continue to Be At Risk
Dairy Markets Continue to Be At Risk

Dairy markets continue to be in peril. On the CME Dairy Spot Call, the block-barrel spread shrunk some more as barrels came down over 3 cents while blocks were the same.

Two Farmers From Opposite Ends of the Country Discuss Challenges Facing Their Dairies
Two Farmers From Opposite Ends of the Country Discuss Challenges Facing Their Dairies

Two producers on the opposite side of the country: Dwayne Faber of Washington and Val Lavigne of New York joined AgriTalk host Chip Flory and spoke about the challenges facing their dairies.

Commodity Markets Continue to Prove Volatile
Commodity Markets Continue to Prove Volatile

Volatility continues to run rampant through commodity markets. Rains in the Midwest have given dairy producers a breather on the run for higher corn and soybean meal prices, but it also fizzles out the support in milk.

Supply Keeps Dairy Demand Satisfied
Supply Keeps Dairy Demand Satisfied

Current production levels of dairy products and plentiful milk supplies leaves buyers unconcerned over buying milk.

Dairy Exports Facing Headwinds in 2023
Dairy Exports Facing Headwinds in 2023

With the U.S. dairy exports documenting their worst year-over-year decline in four years, Ben Laine with Terrain says the headwinds facing dairy exports side of the equation is what concerns him the most right now.

High Beef Prices to Encourage On-Going Dairy Culling
High Beef Prices to Encourage On-Going Dairy Culling

As beef production falls, meatpackers will be looking to dairy producers for cattle

Dairy Report: Over Supply and Plummeting Prices Contribute to Milk Dumping
Dairy Report: Over Supply and Plummeting Prices Contribute to Milk Dumping

Some processors have been forced to dump milk as of late amid oversupply and milk prices plummeting.

Class III Milk Prices Drop Hard
Class III Milk Prices Drop Hard

July faltered 49 cents, August 45 cents, and September was down 37. 

Unimpressive USDA Milk Production Report Spells Surplus in More Ways Than One
Unimpressive USDA Milk Production Report Spells Surplus in More Ways Than One

After hearing reports of milk being dumped due to the surplus of milk on the market, the recent USDA Milk Production report wasn’t surprising. The May report documented a 0.6% increase over a year prior.

4 Reasons Why Milk Prices Are Considerably Lower Than 2022
4 Reasons Why Milk Prices Are Considerably Lower Than 2022

Last year’s record milk price year fueled producers to strategically plan how to utilize the extra income from strong milk prices. Now many producers are wondering what has changed to wildly swing milk prices.

Largest Dairy Cooperative Withdraws from International Dairy Foods Association
Largest Dairy Cooperative Withdraws from International Dairy Foods Association

DFA decided to withdraw its membership from the IDFA over IDFA’s decision to proceed with its single-issued petition to modify the federal milk marketing order (FMMO) system.

No Milk Market Rebound in the Near Future
No Milk Market Rebound in the Near Future

Milk prices have fallen substantially from the record prices dairy producers saw in 2022.

Dairy Producers Feel the Pain as Milk Prices Plunge Almost $10 Under Last Year's Record Prices
Dairy Producers Feel the Pain as Milk Prices Plunge Almost $10 Under Last Year's Record Prices

After hitting a record high for Class III fluid milk in April 2022 at nearly $26, spot month milk futures have plunged to new contract lows, hitting $14.92 per hundred weight on June 16. 

How Long Will Butter Remain Rangebound?
How Long Will Butter Remain Rangebound?

The sideways price range of butter has been able to hold Class IV prices and futures at a better level than Class III.