Markets
Forecasters predict milk prices to drop sharply in 2023.
More milk flowed during the summer months than expected, causing the USDA Economic Research Service to lower its all-milk price forecast for 2022 and 2023.
Slower domestic demand is being offset with higher international demand, but that is still not enough to support prices and turn the trend higher.
Milk prices have hit their highest marks since 2014. But the cost of production has eaten into profits. While higher milk prices have sparked encouragement, producers are curious as to how long these prices will last.
Dairy markets found follow through strength on Tuesday following the bounce experienced on Monday.
Cheese and butter prices continue to hold a large price difference with butter around $1.00 higher than cheese. One reason for this is the substantial difference in inventory levels between cheese and butter.
Milk powder imports hit particularly hard in part due to large current stockpiles
Class III milk futures were mixed on the day. October milk gained 9 cents to $21.94/cwt. November milk eased 20 cents to $20.72/cwt.
Class III milk futures hold steady in September, but October and November prices fall flat.
President Trump has added $1 billion to the U.S. Department of Agriculture’s Farmers to Families Food Box Program and extended it beyond the end of October.
Global Dairy Trade event #316 took place Tuesday. The index settled 2% higher for the second auction in a row.
According to the latest All-Milk price forecast, economists expect the dairy market to strengthen in the coming year.
Food prices have risen substantially causing consumers to look for ways to stretch their dollar. Dairy products will remain an integral part of the diet, but the volume of purchases might be reduced.
The USDA released its August Milk Production report on Monday. As expected, milk production grew, but at levels that exceeded expectations.
Guar is not a common crop grown in the U.S., nor is it widely used here as a livestock feedstuff. But that picture may be changing as alternative crops producers search for more affordable feed ingredients.
Most dairy products climbed higher Tuesday in the CME spot dairy product auction.
With the holiday baking season knocking on consumers doors, just how long will these elevated butter prices last?
Class III milk rocketed higher though September stayed unchanged at $19.79.
Compared to a year ago, dairy product values are up considerably. Unfortunately, feed costs continue to surge upward as well.
Butter had a good day as it moves to levels we have not visited since September of 2015!
Even with strong export demand and overall domestic demand holding well, there is still too much cheese.
Class III milk futures ended the trading day mixed. October milk added 3 cents to $19.97/cwt. November milk fell 9 cents to $20.60/cwt.
Futures markets added 16 to 45 cents in the 2022 months while 2023 saw Q1 gain 23-30 cents.
A ho-hum spot trade continue to cause milk prices to erode lower.
Class III markets declined 32-45 cents/cwt September through December 2022.
Factors influencing the markets have changed over the years which has had an impact on market seasonality.
Corn and soybean values have tempered slightly since the near-historic highs of May and June this year, but dairy feed bills still will be hefty heading into fall.
Class III milk futures climbed higher on the day. August milk gained 14 cents to $20.09/cwt. September milk surged 54 cents to $19.94/cwt.
Class IV lost significantly more value on Monday as September was off 77 cents, October lost 57, November declined 79 cents, and December lost 40.
It was a mixed bag in the CME dairy product trade. Block cheese and barrel cheese fell, while butter gained. Class III milk futures tumbled lower on the day.