Milk Prices
The large decline in cow numbers and reduced milk production turned traders bullish, but that was short-lived. Will higher milk prices be delayed once again?
Dairy producers wonder what it will take for the market to turn around, as we wade out of this volatile economy. Phil Plourd shares fluctuating signals that are a telltale sign if milk prices will rebound in 2024.
Another weak Class III performance was experienced on Monday following last week’s downturn in price.
Milk markets closed a very rough week in similar fashion on Friday.
Milk protected at the $9.50 level will receive indemnity payments of $761.56 for each one million pounds enrolled.
There is great optimism that butter prices will be higher than cheese prices this year.
While the calendar flipped to 2024 weeks ago, there has been little change in dairy market sentiment since the beginning of this year. Globally, the industry continues to walk a tightrope of limited ‘new’ milk.
Recently, the USDA lowered its milk production forecast for 2024 due to lower expected output per cow, which is partly offset by higher cow inventories.
Milk markets continue to widen the Class IV/III spread as Class IV holds over $20 for 2024 calendar and Class III milk bounces around.
Heifers are not as abundant as they had been with prices increasing significantly. Dairy cattle slaughter has slowed with farms showing more interest in purchasing cows to keep stalls full while fewer go to slaughter.
Dairy producers realize that good times don’t last forever. While producers are hoping good times circle again, until then, keeping a close eye on your financials will help you weather the financial storm.
According to Idaho Dairymen’s Association for the first time in a long time, production growth will likely come to a halt due to the financial stress and the negative margins producers out west are experiencing.
Futures values ended up rallying 40 cents in the February contract while March and April were up 50+ cents.
Michael Dykes, CEO of IDFA shared at the 2024 International Dairy Forum in Phoenix that our industry has a growth mindset The big-ticket question is whether today’s producers can help fill the milk production need.
Butter drove the dairy markets higher Thursday with the CME spot trade gaining 11 cents to finish at $2.68 3/4.
With the start of the new year comes the setting of resolutions for personal habits, behaviors and practices. Dairies can and should do the same for their operations. Here are six places to start.
Producers want to know: “Why is milk production remaining high even with lower milk prices and farms going out of business?”
February Class III futures dropped to $15.68 per hundredweight, losing 21 cents.
Spot product markets were mainly unchanged to start the week on Monday.
Class III and Class IV milk markets gave up some ground today. But how much?
As much of the U.S. digs out of snow and bitter cold weather, the milk markets were mixed and continue sideways.
Ask any dairy farmer how they feel about today’s markets and they will say that the economics don’t add up. This is true in any state, but certainly being highlighted in Wisconsin, as last year they lost 455 dairy farms.
The hope is that depressed milk prices will be short lived. However, without a significant increase in demand or tighter milk supply or both, low prices may be with us for a longer duration.
The High Plains Dairy Conference will be March 5-6 in Amarillo, Texas. The conference will explore alternative revenue streams, the future of exports and much more.
While we have flipped the calendar to a New Year, we didn’t necessarily say goodbye to low milk prices. 2023 was a tough year financially for dairy producers and 2024 isn’t off to a great start either.
Dairy replacement heifer trade has been light nationwide. Similarly, global dairy trade has been on the decline. Will the trend continue as we head into 2024?
Minnesota ended 2023 with 146 fewer dairy farm permits than the state did at the beginning of the year. The big-ticket question is with dairy’s razor-thin financial margins, how many more dairies will exit in 2024?
Faltering global demand could offset milk production losses.
French food group Danone said on Tuesday it had signed an agreement to sell its premium organic dairy units in the United States to investment firm Platinum Equity.