Milk Prices
Unemployment rose to 4.3% in July, the highest since October 2021.
Fewer cows went to their local sale barns in the month of June compared to months prior.
Tight supplies continue to drive the dry whey market upward.
Crop conditions across the country remain exemplary with 68% of the current corn crop rated good-to-excellent, a slight improvement from last week’s 67%.
The grain market took a tumble with September corn falling back below $4.
USDA’s June Cold Storage report was neutral for butter but bullish for cheese.
It was whey’s turn to shine in Chicago today, as prices elevated to $0.5400 per pound, up a penny to the highest level since June 2022.
USDA pegged U.S. milk production at 18.8 billion pounds in June. That was down 1.0% versus 2023, a bigger drop than anticipated.
Milk production continues to decline as summer weather takes its toll on cow comfort and feed intakes.
Spot cheese prices started the week off with an increase. Crop conditions are holding relatively steady through the dog days of summer.
Grain futures continue to drop with nearby contracts breaking through key levels.
Milk prices have been better than expected and could remain that way for a while. Lower American cheese production and strong exports should provide further support.
Challenges remain, though, for producers who want to expand.
The USDA has finally issued it’s Recommended Decision proposing to amend the uniform pricing formulas applicable in all 11 Federal milk marketing orders
Dairy cattle slaughter in May totaled 216,100 head, down 22,100 head from April and 33,000 lower than May 2023.
The dairy market remains in a complex landscape of shifting prices and fluctuating demand. Kathleen Wolfley with Ever.Ag says more positivity is coming into the marketplace as we look at late 2024 on into 2025.
July Class III futures rose today to $19.87 per hundredweight, gaining 12 cents.
U.S. milk production dropped 0.9% year-over-year in May.
Processors directing much of the whey stream to WPC and WPI.
Both international demand for cheese and butter improved in April, moving exports significantly above a year ago. However, there may be no further DMC payments for the rest of the year. Here’s why.
It was another day of green in the cheese market. CME spot prices pushed higher, with block values reaching the highest level since August 2023.
Class III milk finished the day mostly unchanged with June down a penny at $19.77 and July up 7 cents to $20.60.
Today’s stout April cheese export data offered a good reminder that competitive U.S. prices can help move the needle on exports.
Class III and Class IV milk prices take a major hit on the chin.
Today’s GDT event was supportive, with increases in powders and cheese fueling further gains in Class III and IV futures.
Limited U.S. milk production likely will offset weakening exports.
In the ever-evolving marketplace, innovation remains at the forefront of progress. Betty Berning of HighGround Dairy recently joined AgriTalk to talk about dairy markets and shed light on some developments and trends.
Friday brought on late buying as the milk markets finished the week with a swing back higher.
“If they could not turn things around, this family would be losing their dairy farm and their house too.”