Milk Prices
If the rising cost of feed offsets historically high milk prices, the signal to produce more milk could go unheeded.
Dairy markets have seen their share of substantial price swings, but more so since the beginning of the year as milk futures moved to record highs. The recent weakness of dry whey may be cause for concern.
We are 26% below a year ago’s level of butter in storage.
The bears drove the market Wednesday as we saw most commodities move lower.
April milk jumped 39 cents to $23.39 per cwt. May milk finished 43 cents higher to $23.50 per cwt.
Strong global demand for dairy continues to push cheese and butter prices to fresh highs.
Each supply regions faces a basket of production challenges.
Cheddar stole the show, settling nearly 11% higher to an all-time high average price of $2.96 per lb.
Class III milk closed with a strong session as futures months were up 5 to 27 cents.
With current milk prices where they are and the optimism prevalent in the market, there have been comparisons made to 2014 when we experienced the highest milk prices on record with the All-milk price averaging $23.98.
July and August 2022 led market strength adding 13 cents/cwt each.
Today’s Global Dairy Trade event 302 concluded with the GDT Price Index 4.2% higher.
With milk, beef, and input prices rising, the decision to cull or not becomes cloudy.
Milk rallied Wednesday despite a lackluster CME spot trade.
Comparisons are being made to 2014, but there are many differences that will impact both milk prices and farm profitability.
Cheese finds a bid and butter continued its slide in a mixed day in the dairy trade.
The past few months have shown incredible volatility for both cash and futures. Buyers were intent on making sure they had sufficient supply on hand in the event milk supplies and dairy product supplies would tighten.
Spot butter climbed to $2.9350, the highest price since September 2015 with an impressive volume of 18 trades taking place in the CME Spot Dairy Auction.
The market is trying to find the balance between perception and reality. Exports have been exceptional, and the potential is for increased exports to Canada due to the USMCA panel determination. Prices will be volatile.
Butter continued to rocket higher, gaining 3 ¾ cent to $2.78/lb.
There are similarities between markets today and those we experienced in 2014, but important differences could mean sustained higher price levels this time around.
Heavy demand, falling milk production, and a shortage of labor combine to send butter prices to four-year-highs.
Butter continued its wild ride – gaining 6 cents on 3 trades to finish at $2.71 per lb.
Class III milk futures saw a limit move of 75 cents higher starting in February out through April.
How are livestock and dairy markets set up for 2022? Bryan Doherty with Total Farm Marketing paints a picture of what could come.
Spot butter surged 9.50 cents higher to $2.40/lb in the CME Spot Dairy Auction.
There is concern over the potential for a tighter supply of dairy products. This is increasing the interest of buyers to purchase more aggressively earlier than usual.
Global Dairy Trade event #298 took place Tuesday morning and the price index closed 1.5% lower.
New trade agreements and strong demand north of the border created a strong pull on U.S. dairy
Class III milk futures were mixed. January milk declined 21 cents to $19.59/cwt. February added 1 penny to $19.95/cwt.