Milk Prices
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.
As long as the beef market is hot, the key for producers will be maintaining the right number of lactating cows going through the parlor and ensuring the right number of replacement heifers can keep that pipeline full.
International demand needs to pick up before U.S. milk prices can increase significantly.
It seems as if the dairy industry has taken HPAI in stride. Price fluctuations have been the result of buyers of the physical commodity on the CME daily spot market doing normal business.
Green returned to milk markets Friday as we finish the week on a strong note in a highly volatile market.
Third quarter Class III futures dropped to $18.02 per hundredweight, a 14-cent loss.
Lucas Fuess with RaboResearch says we are now in a far different state as producers have kept fewer replacement heifers and the milking herd numbers are the lowest they’ve been in four-plus years.
So far, HPAI has not had an impact on milk futures or the underlying cash prices. However, HPAI has not had an impact on milk futures or the underlying cash prices.
Once again, Farm Journal will be awarding Milk Business awards to dairy producers from whom our readers can learn business concepts, ranging from technology to young producers to employee excellence.
What’s new and rare for the dairy industry is that we are experiencing nearly a year of weaker global milk supply. What’s not new is that for the seventh consecutive month, milk production has documented a decline.
Jay Bryant, CEO of Maryland & Virginia Milk Producers Cooperative Association (MDVA) announced he will retire from his position at the end of this year. Jon Cowell, current CFO of MDVA, has been named as his replacement.
In the world of dairy farming, maximizing profits and ensuring financial viability is a constant challenge.
Southwest plant expansions will likely draw milk from distant regions
If there’s any assurance about the economic picture for the dairy industry and agriculture in general going forward in the next few years, it’s that volatility will be a constant.
Cow numbers declined last year and will likely decline further if milk prices remain low. Tightening heifer numbers and higher milk replacement cow prices may reduce the ability of farms to keep stalls full.
Class III Milk markets have been less than exciting.
Cheese continued its descent on Monday as cheddar blocks fell 2.50 cents and barrels were down 2.75 cents. Class III values also reacted in a weaker tone.
Depooling, new cheese production capacity, lower component prices all take toll on income.