Milk Prices
Dairy markets came to party today as positive price action for Cheddar on the GDT auction this morning helped boost an underperforming Spot Call Auction.
USDA will soon decide whether to hold a formal hearing and propose changes to dairy’s minimum pricing system, which would then require a vote from dairy farmers.
The USDA’s Agricultural Marketing Services (AMS) has announced that the formal process of modernizing Federal Milk Marketing Orders (FMMO) is now officially underway.
Milk markets bled into the weekend after failing to put together two days in a row of a positive move in Cheese.
An ongoing march to pay farm workers more continues to unfold in the state of New York as agriculture labor regulations have drastically changed. From farm owners to farm workers, this has all led to confusion.
The ongoing milk price rollercoaster that seems to be on a downward track has once again forced a Dairy Margin Coverage payment to be issued in 2023. The DMC income over feed costs for April is $5.84/cwt.
It appears June Class III milk could be below $16.00 and back to the lowest level since August 2021.
As the calendar moves past the spring milk production peak, dairy farmer’s attention remains laser-focused on the milk price and overall margin outlook throughout the remainder of this year.
Dairy producers have adjusted to uncertainties that face them such as rising feed costs, ongoing labor challenges and navigating a pandemic and its ripple effect. Three producers share how they tackle uncertainties.
Tucked in the rolling hills of a quaint New England town, Fairholm Farm in Woodstock, Ct., a century-old farm’s recipe for success also includes technology and securing additional profit sources.
It’s not the news dairy producers want to hear, but one analyst says the outlook for milk prices according to the futures market is not very good.
The USDA Milk Production report for April showed a 0.3% increase. Phil Plourd says that on-farm margins have deteriorated to a degree that, historically, corresponds with less milk production or at least slower growth.
Dairy product and milk prices are substantially lower than a year ago, yet this has not been reflected at the retail level. Thus, lower prices are not stimulating demand as consumers are not seeing them.
Milk markets continue to lurk in the doldrum this week. Feed and grain prices also slid lower giving dairymen a breather on fall feed prices.
Milk prices have felt pretty lackluster throughout 2023. Unfortunately, this trend is one farmers will continue to face throughout the remainder of the year and going into 2024.
Friday was not a good day for dairy markets - the roller coaster of spot trade continued lower on the trade with Cheese struggling on large volume.
Recently, NMPF president and CEO, Jim Mulhern, spoke to AgriTalk’s host, Chip Flory, about federal milk marketing orders. NMPF has requested a national hearing to amend five pricing provisions under the FMMO.
Dairy markets continue to dissapoint this week as the CME Dairy Spot Call continues to see offers with a lack of bids.
Butter and nonfat dry milk rose in value while both cheese contracts and whey fell.
A big U.S. corn crop could further reduce feed prices.
The CME Spot Trade was flat to negative across all commodities. Grains are having a tough go of it after China ghosted the marketplace.
Dairy products continue to be offered on the spot market even though prices are already low. Sellers seem to want to move product and limit inventory rather than maintain a higher supply for upcoming demand.
Phil Plourd, president of Ever.Ag Insights, says that from a producer perspective, risk management decisions have gotten tougher in the past few months. Penn State offers tips to be considered when using milk futures:
Dairy markets continued their downhill decent as we kicked off the first day of May.
For the third time this year, a Dairy Margin Coverage payment will be issued. Here’s what to expect.
Class III milk saw it’s first green in several days
With today’s market conditions, producers are capitalizing on strong beef prices. More cows went to slaughter in March, the highest total since 1986, the year of the whole-herd buyout program.
The March 2023 USDA Milk Production report showed a 0.5% increase in year-over-year milk production. Cow numbers also showed an increase of 31,000 head over last year, but production per cow only gained 3 lbs.
Milk markets are continuing to struggle under the weight of higher production in the U.S.
The 2023 calendar year is off to a fast start and 90 days into the New Year leading economists say that milk production has been weaker than anticipated.