Milk Prices
While understanding your cost of production is an important metric, it’s also a valuable tool to help you make decisions on a day-to-day basis in order to make your farm more profitable.
$1.5 billion is earmarked for another round that will provide nonprofits with food boxes that will contain 5-6 pounds of Cheese, yogurt, butter, cream cheese, or sour cream.
Class III milk futures traded higher only to change directions as we moved through the spot cheese trade.
There are several key takeaways for dairy in the latest COVID-19 aid bill just signed by President Trump.
COVID-19 and government programs have been two main catalysts for volatility in 2020. However, 2021 is expected to have many challenges that may keep volatility high.
The Grinch returned to the cheese markets Thursday as Markets closed early for the Christmas Holiday.
Class III milk turned in another interesting trade on Wednesday as futures markets traded as high as the limit of $1.50/cwt before decreasing and settling near 75-80 cents stronger in January and February.
Government intervention creates a level of uncertainty that makes a 2021 milk price forecast nearly impossible.
“In my heart, it honestly feels like they were trying to bully or scare people into just paying it.”
Today’s green on the CME started with stimulus talk and was fed by another positive move in the Global Dairy Trade Event.
Futures once again sold off late in the session after showing initial strength. December gained 1 penny to $15.80.
A stronger open across the forward curve was seen early and peaked after the CME spot dairy auction at limit up in Q1 2021.
First half 2021 ended the session with an average north of $17 while second half prices are now pushing $17.40/cwt.
Green lit up the commodity markets on Wednesday.
Products across the board were neutral to modestly higher Tuesday in the CME Cash Dairy Product Trade.
Class III milk futures soared to follow up Friday’s USDA solicitation announcement purchases on both butter and fluid milk.
Class III milk started the day higher, buy lost steam into the end of trading.
Whey and Butter find a spark to support Class III milk and drive Class IV higher following a positive Global Dairy Trade.
A stronger CME spot dairy product trade was met with a lower Class III trade on Wednesday but slightly higher Class IV trade.
Dairy markets quietly slid lower after a mixed CME spot trade.
Class III milk prices traded 40 cents stronger on Friday in December and reached back up to $16.00/cwt.
Each culling decision should be a bit individualized, based on a heifer’s genetic background and health history.
Due to the uncertainty in markets, University of Minnesota economist is urging dairy farmers to lock in prices now.
All in all, analysts agree milk prices could fall a staggering 20%, which would put us in the neighborhood of 2008 prices.
Farmers who survived the downturn from more than 30 years ago learned best practices that are applicable to today’s challenges.
Higher production does not guarantee profitability, but it does provide the opportunity to pay more bills as long as costs are contained.
Under pressure, Amish farmers begin to exit dairy business
Dairy producers are facing an industry with too much product and not enough capacity, forcing prices south over at least through the first half of 2018.