Milk Prices
2022 Class IV milk has a $20.43 average, pulling ahead of Class III.
Class III and IV markets finished the week off with a bang.
December class III milk advanced 58 cents to $17.73/cwt. January milk tacked on 55 cents to $18.30/cwt. February shot up 35 cents to $18.75/cwt. Class IV milk futures jumped 15-34 cents in the first half of 2022.
Some the historical cycles and seasonal price movements are not being followed as they have in the past. The bottom line is supply and demand.
USDA’s undersecretary for farm production and conservation, farmers can expect to receive the remaining 20% by the end of August.
Friday’s cold storage report gave us a mixed bag of information after a fairly bullish milk production report earlier this week.
The continued strength of milk futures shifted the mindset of traders to bullish as dry product prices provide support to the market.
Blocks and barrels finished lower to start the week in the CME Cash Dairy Product Trade.
A quiet end to a nice week in the dairy markets. Only Butter failed to improve their weekly average from last week.
New milk pricing ideas have been put forth, but there is an immediate call to revert back to the higher of pricing formula.
Green was a popular color on CME ag commodity screens to kick off the week on Monday.
Markets were calm across the board to close out the week.
Class III milk values endured weakness in the fourth quarter of 2021 with October losing 21 cents, November 20 cents, and December off 4.
The government is going to provide more financial assistance for market volatility and price adjustments.
Delta, vaccine reluctance and no vaccine for students under 12 could derail the recovery in school milk consumption.
A 70-cent rally in September Class III milk highlighted the dairy complex on Friday.
Class III milk futures exploded higher for the first time in a while.
Producers in many federal orders are continuing to open milk checks to find Producer Price Differentials (PPDs) of negative $1 to $2, where they would have typically expected positive values.
Despite a stronger cheese session to kick off the week on Monday, Class III milk prices fell.
Butter stocks totaled 414 million lb. in June, just 2.6 million more than the month prior.
Cheddar was the sole product settling in the green today, up 1.3% for Global Dairy Trade 288.
The CME spot trade saw blocks jump 8 ¾ cents higher on 2 trades to $1.71/lb and Barrels jumping 4 cents higher to $1.55/lb.
Overall demand for U.S. dairy appears headed back to pre-pandemic levels.
What can we expected for milk production and milk prices if the drought continues and corn prices move above and/or stay above $7.00 or maybe even $8.00?
The grain markets experienced a rough start to the week on Monday as weather forecasts 10-14 days out predict cooler and wetter patterns to bring relief to areas in need of some rain.
Class III milk futures finished the week trading a tight window of prices.
Class III futures were mixed today. June milk lost a dime to $17.05/cwt. July slid 18 cents to $17.44/cwt. August milk declined slightly with September and October finishing in green.
June Dairy Month brings us a CME spot trade of mostly green