Markets
Global Dairy Trade event #298 took place Tuesday morning and the price index closed 1.5% lower.
New trade agreements and strong demand north of the border created a strong pull on U.S. dairy
Class III milk futures were mixed. January milk declined 21 cents to $19.59/cwt. February added 1 penny to $19.95/cwt.
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.
Ten for ten, USDA’s ag Prices report announced yesterday afternoon that the October 2021 Dairy Margin Coverage income over feed costs resulted in $8.77/cwt.
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.
In the long run, what opportunities could farmers harvest? Consider these emerging trends.
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.
Drought in the Midwest and crop damage from the remnants of Hurricane Ida had created dampened optimism this summer about the size of this year’s U.S. corn crop.
Crafting effective lactating rations when the “ideal” ingredients are in short supply is challenging, but possible.
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.
The 2021 climate of high feed costs and tepid milk prices are creating a tenuous financial scenario for most U.S. dairy farms.
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.
Risk management should not be viewed as a way to make money, but rather a way to protect income.
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.