Milk Prices
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.”
Milk production in April was stronger than expected and may indicate output could exceed a year ago if the current pattern remains. Heightened volatility will persist as traders grapple with reality and perception.
Returning from the extended holiday weekend, dairy markets opened the week on a bearish note.
2024 started on a downward slope, as year-over-year milk production continued to drop 1.3% in February. The U.S. milking cowherd dropped below year-ago levels each month since June 2023.
I used to believe that $20 milk is what it takes to rock and roll. To cover our expenses and to have some dollars left to make capital purchases. What is the new break-even cost?
It seems like prices have finally started to turn the corner. But will this small rebound be short-lived?
The USDA raised its milk production forecast for 2024 based on an increase in dairy cows and more rapid growth in output per cow.
Class III futures have made an impressive increase over the past month with the June contract increasing by over $4.00 per cwt. The last time we saw this movement in an actively traded contract was in the spring of 2020.
The downturn dairy economy makes it difficult to plan for growth. We have to remind ourselves that future plans don’t have to be yes or no, sometimes the answer is simply not yet.
Rabobank believes slow but steady dairy commodity price gains will materialize in the second half of this year.
With feed prices dropping, no indemnity payment will be issued for March milk production, as the USDA Agricultural Prices report calculated Dairy Margin Coverage (DMC) income over feed costs to be $9.65.
Cow numbers are lower than a year ago, but fewer cows are being culled than anticipated. The lower availability of replacements and strong interest in beef-on-dairy may influence the level of culling.
Milk markets put in one of its quieter days over the past month on Monday.
The deadline to enroll for the USDA’s Dairy Margin Coverage (DMC) and Supplemental Dairy Margin Coverage (SDMC) programs is approaching fast. The last day for producers to sign up is Monday, April 29, 2024.