Markets
Third quarter Class III futures dropped to $18.02 per hundredweight, a 14-cent loss.
So far, HPAI has not had an impact on milk futures or the underlying cash prices. However, HPAI has not had an impact on milk futures or the underlying cash prices.
Southwest plant expansions will likely draw milk from distant regions
Class III Milk markets have been less than exciting.
Cheese continued its descent on Monday as cheddar blocks fell 2.50 cents and barrels were down 2.75 cents. Class III values also reacted in a weaker tone.
Depooling, new cheese production capacity, lower component prices all take toll on income.
The large decline in cow numbers and reduced milk production turned traders bullish, but that was short-lived. Will higher milk prices be delayed once again?
Another weak Class III performance was experienced on Monday following last week’s downturn in price.
Milk markets closed a very rough week in similar fashion on Friday.
There is great optimism that butter prices will be higher than cheese prices this year.
While the calendar flipped to 2024 weeks ago, there has been little change in dairy market sentiment since the beginning of this year. Globally, the industry continues to walk a tightrope of limited ‘new’ milk.
Recently, the USDA lowered its milk production forecast for 2024 due to lower expected output per cow, which is partly offset by higher cow inventories.
Milk markets continue to widen the Class IV/III spread as Class IV holds over $20 for 2024 calendar and Class III milk bounces around.
Futures values ended up rallying 40 cents in the February contract while March and April were up 50+ cents.
Butter drove the dairy markets higher Thursday with the CME spot trade gaining 11 cents to finish at $2.68 3/4.
Producers want to know: “Why is milk production remaining high even with lower milk prices and farms going out of business?”
February Class III futures dropped to $15.68 per hundredweight, losing 21 cents.
Spot product markets were mainly unchanged to start the week on Monday.
2024 should be a good year for U.S. cheese exporters.
Class III and Class IV milk markets gave up some ground today. But how much?
As much of the U.S. digs out of snow and bitter cold weather, the milk markets were mixed and continue sideways.
The hope is that depressed milk prices will be short lived. However, without a significant increase in demand or tighter milk supply or both, low prices may be with us for a longer duration.
Just how low will milk prices go? Slower exports, weaker demand and global inflation have all been an anchor on the potential for higher dairy product prices. Will we finally start to see some relief in 2024?
Dairy markets continued their descent on Monday following another day of weak cheese performance on the CME spot dairy auction.
CME product markets on Monday tilted to the negative side to kick off the week.
In its December World Ag Supply and Demand Estimates (WASDE) report, the USDA once again lowered its milk production and price forecasts for 2023.
Dairy markets on Monday put forth a relatively uneventful trade.
With sufficient supply and much of the holiday buying being finished, there is little reason for buyers to be aggressive. The usual slower demand period is just around the corner.
Demand for high-protein whey products appear to be lifting the whey complex.