Milk Prices
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.
Price pressure, coupled with high cost of production, will mean some dairy farmers might struggle to achieve profitability this year.
For the first time this year, a Dairy Margin Coverage (DMC) payment will be issued. Yesterday, USDA’s Farm Service Agency announced that February’s DMC income over feed costs calculation is $7.94/cwt.
Grain markets continued their trek lower while milk prices remained relatively flat.
High slaughter rates could curtail milk production growth in 2023.
Dairy Markets were muted Friday as corn prices and the DOW Jones plummeted lower.
Milk prices have declined substantially within the last few months. Will this be the trend for the rest of 2023?
Class III markets saw March to June prices rise 11-24 cents/cwt while second half values ranged from even to 12 cents stronger.
A dozen years ago, Walnutdale Farms experienced something a farm never wishes to happen. The Michigan dairy lost its milking parlor in a fire in 2010. Since then, the family dairy has grown in more ways than one.
All markets in ag experienced light trading volumes ahead of the three-day weekend.
Markets took a nap on Thursday with both feed and milk showing very little movement.