Milk Prices
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.
For the second time this year, a Dairy Margin Coverage (DMC) payment will be issued. The USDA’s Farm Service Agency announced that March’s DMC income over feed costs calculation is $6.19/cwt.
Q2 Class III Milk futures lost about 12 cents settling to $18.52.
Spot milk prices continue to remain lower than usual since the end of last year. Many plants are not purchasing the available milk even though plant capacity is not fully utilized.
Warren Buffet saying, “Rule No. 1: Never lose money. Rule No. 2, don’t forget Rule No. 1” is widely known. Dr. Brady Brewer from Purdue University said it is unlikely that Buffet spends much time working in ag.
A strong week of Class III milk continued into Friday’s trade.
After a strong morning trade, the CME spot trade pushed April milk down from 19.19, below 19 and then ran to its highs of $19.48.
The recent movement of barrel cheese is similar to some previous moves over the past two years. Each time price peaked and fell faster than it increased. Will this pattern again be repeated?
The rollercoaster of the dairy industry certainly isn’t new. Dan Basse told the PDPW audience last week that a great reset is underway for the dairy economy, which will spell a more competitive world market.
A different story is unfolding in 2023 with a decline in milk prices, while expenses continue to remain high. What are the best recommendations to help position yourself for a good start for the first half of the year.
April Class III milk futures were limit up. Here’s how other commodities fared.
Class III milk markets ended Monday’s trading session in a mixed fashion.
In its March World Ag Supply and Demand Estimates (WASDE) report, the USDA increased its U.S. milk production forecast for 2023. Milk price predictions, however, went in the opposite direction.
The rollercoaster of milk prices is something we have seen before. Dr. Kevin Bernhardt with the UW-Extension recommends producers do a sensitivity analysis and ask, ‘How quickly can your good fortunate change?’
One glance at the milk futures and it’s hard to be optimistic, especially coming off a record milk market year. Simply stated, the second half of the year presents opportunities that come with bittersweet reviews.
Dairy products continue their fall off last year’s all-time high prices.