Milk Prices
Despite the decline in CME blocks, nearby Class III contracts ticked higher. February and March futures rose to $20.92 and $20.59 per hundredweight, tacking on six and eight cents, respectively.
Looking back on the past year, we see price improvements in all categories.
The Class III market ended the week on a positive note, settling higher through most of the first half.
Class III futures started off the new year with a pop this morning.
On the heels of the CME cheese jump, the January Class III contract climbed to $20.43 per hundredweight, tacking on 31 cents.
Following a slow performance in the spot market yesterday, today’s trading saw a bit more activity ahead of the early market close.
In less than two years, dry whey prices have rallied from their all-time low.
Class III futures turned red today on the heels of a quiet spot cheese session.
Today’s spot market witnessed another solid performance on the cheese front, with prices rising to the highest levels in more than a month.
Class III futures continued to climb, taking the lead from the spot cheese markets.
The 2024 Farm Journal State of the Dairy Industry Report unveils four critical takeaways that provide valuable insights into the evolving landscape.
Supported by upward momentum in spot cheese and whey, Class III and cheese futures jumped.
Some recovery in Class III futures has come just in time for the Q1 2025 DRP deadline on Friday.
Dry whey prices remain buoyant, rising to 73 cent per pound.
Whey led the rally in Class III last week and came out of the gate strong with bids this morning, giving Q1 Class III futures contracts an early pop back over $19.50.
It’s not very often that whey takes the lead story, but it’s had main character energy this week.
CME cheddar markets continued yesterday’s climb. Blocks advanced to $1.7000 per pound, adding three cents, while barrels rose to $1.6675, $0.0175 higher.
Today’s spot market showed mostly positive activity, with cheese prices making notable gains.
In the face of fluctuating market dynamics and economic pressures, innovative profitability strategies have become crucial, particularly in the dairy industry.
CME cheese markets continued to lose ground, with both blocks and barrels reaching the lowest levels since April.
The recent U.S. Milk Production report unveils a remarkable shift in milk production trends, catching the attention of many in the dairy industry. Despite a prevailing decline throughout much of 2024, the latest figures reveal an unexpected resurgence, with a year-over-year increase of 0.4%.
Output remains variable across Europe’s largest milk-producing regions. Germany’s production dipped 1.8% year-over-year in September, while output in the Netherlands dropped 2.6%. Production in France, on the other hand, rose 3.2% on the year.
It took almost all year, but there is better news price wise for dairy producers.
After being on the decline, CME cheese prices ended the week on a rise.
International Dairy Foods Association analysis suggests that the average gallon of milk will only increase by 11 cents.
USDA reported more milk is coming online ahead of new plant openings, leaving some milk without a home in some regions and leading to a wide price spread of -$3.00 to +$3.00.
The food index increased 0.2% month-over-month with grocery store prices ticking up 0.1% and food away from home prices gaining 0.2%.
USDA AMS announced its Final Decision on changes to the Federal Milk Marketing Orders, making only minor adjustments from the Recommended Decision in July.
In the world of agriculture, dairy farmers have faced their fair share of challenges over recent months. Fortunately, there is a glimmer of hope on the horizon as the sector sees an encouraging increase in milk prices.
Butter sales jumped 23% year-over-year.