Dairy producers are starting the year off with margin pressure following the latest round of USDA reports. A rally in grain prices following a cut to corn yields helped push feed costs higher.
Milk prices were also under pressure. Class III February price futures fell to near $20.27 per cwt., down 65 cents, but did gain back some of those losses later in the week. Block cheese started last week at a two-month high at $1.94 but closed lower as some support melted in the wake of the WASDE report.
USDA is forecasting lower production in 2025 due to slower growth in output per cow.
Foot-and-Mouth Disease Found in Germany
First time in nearly 40 years Germany is dealing with an outbreak of foot-and-mouth disease. It was confirmed in a herd of water buffalo on the outskirts of Berlin. The disease causes fever along with mouth blisters in animals including cattle, swine, sheep and goats. German officials say they are taking steps to contain the disease.
The illness doesn’t pose a danger to humans, but they can transmit it. Officials say affected animals have already been euthanized and the country has already set up an exclusion and monitoring zone. The last case of foot-and-mouth disease occurred back in Germany in 1988.
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