Markets
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.
When business is no longer usual, it’s a great time to reassess your strategic focus. Is your farm still marching toward its goals?
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.
The saga of lower milk prices is forecasted to continue for dairy farmers as the USDA once again cut 2023 all-milk price projections in its July World Ag Supply and Demand Estimates (WASDE) report.
The first half of Summer 2023 in dairy markets will be noted for breaking records, and not in a good way.
Lower prices may eventually stimulate exports. However, the current market struggles to find a bottom as supply exceeds demand.
Cheese found some life the day after the second biggest volume day of Barrels traded on the CME.
Current production levels of dairy products and plentiful milk supplies leaves buyers unconcerned over buying milk.
The USDA is being viewed as friendly to one part of the dairy market, zeroing in on cheese.
Some processors have been forced to dump milk as of late amid oversupply and milk prices plummeting.
July faltered 49 cents, August 45 cents, and September was down 37.
Milk prices have fallen substantially from the record prices dairy producers saw in 2022.
The sideways price range of butter has been able to hold Class IV prices and futures at a better level than Class III.
Summer milk prices continue to see a slump. Here’s where the markets landed today.
Lower milk prices seem to be the trend for 2023. And, unfortunately, it appears to be one farmers will continue to face going into 2024.