Cheese
Whey led the rally in Class III last week and came out of the gate strong with bids this morning, giving Q1 Class III futures contracts an early pop back over $19.50.
It’s not very often that whey takes the lead story, but it’s had main character energy this week.
CME cheddar markets continued yesterday’s climb. Blocks advanced to $1.7000 per pound, adding three cents, while barrels rose to $1.6675, $0.0175 higher.
Per capita consumption of dairy products reached 661 lbs. per person in 2023, an all-time high.
Today’s spot market showed mostly positive activity, with cheese prices making notable gains.
CME cheese markets continued to lose ground, with both blocks and barrels reaching the lowest levels since April.
Output remains variable across Europe’s largest milk-producing regions. Germany’s production dipped 1.8% year-over-year in September, while output in the Netherlands dropped 2.6%. Production in France, on the other hand, rose 3.2% on the year.
After being on the decline, CME cheese prices ended the week on a rise.
USDA reported more milk is coming online ahead of new plant openings, leaving some milk without a home in some regions and leading to a wide price spread of -$3.00 to +$3.00.
The food index increased 0.2% month-over-month with grocery store prices ticking up 0.1% and food away from home prices gaining 0.2%.
USDA AMS announced its Final Decision on changes to the Federal Milk Marketing Orders, making only minor adjustments from the Recommended Decision in July.
Butter sales jumped 23% year-over-year.
High cheese prices and declining feed costs have finally dealt dairies a winning hand.
The global food paradox involves reimagining our production methods, leveraging trade more strategically and prioritizing sustainable practices. By doing so, we have the potential not only to feed the growing global population but to do so in a way that sustains our planet for generations to come.
Butter production in September totaled 159.2 million pounds, up 11.3%
November futures settled at $20.25 per hundredweight, up 13 cents, while Q1 prices came in at $19.68 per hundredweight, 10 cents higher.
In the ever-evolving landscape of the dairy industry, the long-term viability of the milk supply is a crucial topic. Our industry is indeed in a growth mindset akin to a fish jumping out of a bowl. This vivid imagery suggests that the industry is not merely maintaining its current status but is actively seeking ways to expand and adapt to new challenges and opportunities.
Nearby Class III contracts fell along with spot cheese, with November futures dropping to $20.12 per hundredweight, down 15 cents, and December declining to $19.46, 21 cents lower.
Lactalis USA recently announced that it will be making a major investment in its Tulare, California facility.
Like spot cheese prices, Class III futures were mixed.
Barbara O’Brien, president and CEO, of DMI, addressed over attendees at the recent dairy joint annual meetings in Phoenix, Az. Her message centered around the organization’s checkoff strategies, poised to usher the industry into a new era of consumer engagement and growth.
Class III futures were mixed, with the November contract up nine cents to $20.22 per hundredweight and December down 16 cents to $19.94.
Neal’s Yard Dairy, one of Britain’s top artisanal cheese suppliers, recently fell victim to a sophisticated scam orchestrated by French fraudsters, losing over 24 tons of cheddar in the process.
The utilization of beef-on-dairy to supplement farm income by boosting the value of calves has become an important aspect of the dairy operation. Livestock Risk Protection insurance can manage the price risk of your unborn calves.
Warm, dry weather allowed farmers to advance corn harvest, with 81% of the crop now out of the field, a jump from 65% harvested last week.
Class III futures moved lower along with CME cheese.
Class III futures followed barrels downward, with the nearby contract setting at $22.72 per hundredweight.
After plunging yesterday, Class III futures reversed course.
Spot prices dipped today following yesterday’s bearish Milk Production report.
A weaker milk supply has finally resulted in price strength for certain dairy products.