Milk Prices
Many milk checks fall well short of covering even the cost of production.
The markets are always filled with surprises and this year has been no exception. Butter prices have reached new highs while dry whey and nonfat dry milk markets have remained flat.
Butter stocks shrank to 289 million pounds, down 40.3 million pounds from July.
Seasonal buying is taking place, but sellers continue to offer product on the spot market leaving buyers unaggressive.
Higher milk prices may not necessarily mean greater income depending on feed prices. The recent hot weather has had an impact on milk production, but it also may have had an impact on crop yields.
Softness in the block cheese market put a damper on early strength in Class III on Friday.
Dairy industry leaders say there are hopeful signs that the milk price situation may improve.
Dairy Markets enjoyed a positive today for Class III and a negative day for Class IV.
A strong finish for Class III milk even though Cheese was sideways.
USDA cold storage completed a quiet but softer dairy trade day.
CME futures prices rallied following USDA’s report. September closed 39 cents higher while October was up 22.
August milk prices will be much better than July, but still far from where we would like them to be. Here’s what to expect in the coming months.
After a long stretch of low milk prices, the USDA has raised the 2023 all-milk price projection for the first time in months.
Butter had 49 loads trading hands on the CME spot trade. Here’s what that meant for dairy prices.
Class III milk prices retreated a bit as September 2023 milk lost 15 cents, October dropped 16 cents, November weakened 21, and December was off 13.
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.
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.
Class III milk markets were able to return some of the value lost late last week.
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.
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.
Dairy markets resumed their rally on Monday with Class III prices closing 40 cents stronger in the August and September months.
After giving back some of last week’s big gains in Class III Milk, prices bounced back on Friday.
Class III markets continue to be confused on which direction they want to go.
Changing demographics could eventually diminish China’s Importance in global dairy markets.
Cheese prices made a dramatic turn over the past month as buyers turned aggressive.
July ag economists’ monthly monitor reveals milk price expectations into 2024.
Class III milk continued its aggressive rally trading limit higher in August, September, October, and November
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.
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.
The roller coaster continues in our commodity markets.