Milk Production report finished off a volatile week in Dairy Markets. U.S. milk production dropped 0.9% year-over-year in May, slightly below Ever.Ag expectations. Given recent strength in dairy markets, this report may not add any additional fuel to the fire. Cow numbers declined 68,000 head compared to last year, although USDA noted 5,000 more cows in May versus April. Both Texas and New Mexico grew by 3,000 head each, but that still leaves New Mexico down 42,000 head from a year ago.
After an early rally to follow Thursday’s bump higher ahead of the anticipated Milk Production report - we finished the day mixed after spot cheese failed to move higher for the second day in a row. Cheddar blocks finished down ¾ of a cent to $1.84 1/2, with Barrels down a penny to $1.92 on heavy volume. Butter gained a penny to $3.09 but powders fell lower with NFDM at $1.20 1/2, down a quarter of a cent and Dry whey down a penny to $0.47/lb.
Class III milk had June up 3 at $19.91, July down 2 at $19.75, and August sliding 2 to $20.57. Class IV milk was unchanged across the board at $21.15 June, 21.35 July, and August at $21.54/cwt.
With Ever.Ag this is Jenny Wackershauser for Know Your Markets
For more on markets, read:
- Whey Values Climb to Boost Class III Prices
- Milk Futures Indicate Prices May Be Much Better Than Last Year
- Springers, Calves and Beef-Cross Animals all Bring Big Money
