Markets
Tuesday’s spot dairy product session was higher and Class III milk futures surge forward.
Markets can be driven by trader psychology for a period of time and can result in prices being overdone to one side or the other. In the end, fundamentals rule. Recent reports may indicate the market may see a change.
August milk slipped 50 cents to $20.19/cwt. September also fell 50 cents to $20.01/cwt.
Increased cost of production has somewhat been compensated for by increased milk prices. But do milk prices need to remain high just because?
Class III milk futures were lower across the board. July milk was down 22 cents to $22.58/cwt. August milk declined 46 cents to $22.87/cwt.
Some dairy producers have just received their highest milk check to date. What’s the highest milk price you’ve ever received? Vote in our latest poll!
Consumers who are battling soaring food prices try to stretch their grocery budgets.
July milk gained 22 cents to $22.65/cwt. August moved 6 cents higher to $23.14/cwt. September milk settled at $23.57/cwt. Class IV milk prices were slightly lower.
Butter softened a half cent to $2.91/lb, barrels lost a half cent to $2.1425/lb, and nonfat dry milk declined a penny to $1.78/lb.
This past March marked the highest ever U.S. monthly average milk price at $25.90 per cwt. But since that time dairy has been on the downswing.
Class III milk was up 3 in June to $24.34, July up 1 to $24.25 and August up 1 to $24.40/cwt. The balance of the year was weaker unchanged to 27 lower.
There is uncertainty surrounding the impact a recession could have on milk prices. Dairy demand may perform better than other areas, but slowing demand might pressure milk prices.
Butter moves into territory we have not seen since September 2015.
Temporary cream shortages and dwindling butter stocks add support to dairy markets.
Spot butter advanced to $2.9350/lb, the highest price since January in the CME spot dairy product auction.
As milk begins to contract, South American dairy processors have had to boost payouts to producers
Class III milk futures soared on the day. June gained 22 cents to $24.79/cwt. July milk launched a 42-cent gain to $24.82/cwt. 2023 milk futures also saw nice increases.
Analysts predict the possibility of $10.00/bu. corn in the coming year is not out of the question.
It is important to know that the success of the entire production will be based on determining a proper date to cut for the highest yield and quality.
May milk moves back over $25, as the rest of the dairy markets took a nap.
Class III Milk saw May gain 51 cents to $24.72, June gained 37 to $24.30 and July gained 39 to $24.12/cwt.
Butter prices at the latest Global Dairy Trade event plunged 12.5% to $5,807 per metric ton, or $2.63 per pound on an 80% butterfat equivalent.
Milk futures have been impacted significantly by dry whey and nonfat dry milk, making rebounds to previous highs more difficult to achieve.
Class III milk markets settled 40-50 cents lower although certain months were trading down near a limit of 75 cents near the close.
Dairy Markets make a nice rebound Thursday as the CME spot trade finds support.
Class III milk prices closed double digits lower in all months between May 2022 and September 2023.
Lower hay supplies and to potential for lower acres and lower production this year could increase hay prices significantly.
In the Class III complex, May milk’s settlement price closed into new contract highs at $25.55/cwt.
USDA is increasing its milk production forecast to be higher due to growth in the number of dairy cows.