The Latest: June - 2026
What Goes Up Must Come Down
What goes up must come down, and the milk powder market is no exception to the laws of gravity. This week, CME spot nonfat dry milk (NDM) demonstrated Isaac Newton’s third law of motion, the one that describes equal and opposite reactions. Spot NDM dropped just as quickly and dramatically as it soared. It fell 26ȼ in five trading sessions to $1.785 per pound, a three-month low.
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Indecision continued to pervade the dairy markets this week as the price of most products waffled close to recent levels. While the market tone is not one of desperation, both supply and demand leave something to be desired with the two market forces going head-to-head to see which will exert more influence on prices.
View reportLos mercados lácteos están buscando un fondo. Los futuros de Clase III de abril a julio marcaron mínimos en la vida del contrato esta semana. Estos son precios que seguirán impulsando la contracción en la industria, reduciendo la producción de leche y la producción de productos lácteos. De hecho, a pesar de las grandes inversiones en la capacidad de producción de queso en Estados Unidos, la producción de queso cayó un 1.2% por debajo de los volúmenes del año anterior en enero. La producción de cheddar, un factor importante para el precio en Chicago, cayó un 7.9% interanual en enero. Y el queso competitivo en precio de Estados Unidos.
View reportThe dairy markets are feeling around for a bottom. April through July Class III futures notched life-of-contract lows this week. But the bulls are not wallowing in despair.
View reportIt was a rough week on LaSalle Street. The trade had hoped that lower milk output and a smaller dairy herd would propel the markets upward. And they did, for a time.
View reportThe U.S. dairy industry continues to shrink. In the latest Milk Production report, USDA trimmed its estimates of 2023 milk production, and it cut its assessment of the milk cow herd for every month last year. According to the latest figures, the milk-cow herd contracted nearly 50,000 head in 2023 and declined another 23,000 head from December to January.
View reportUSDA released its 2022 Census of Agriculture earlier this week, providing the latest installment of the once-every-five-year report on the state of agriculture in the country. Unsurprisingly the report showed that farm numbers have fallen while expenses have risen, and the average American farmer has aged. But the report provided some encouraging information, as well. Total farm income rose by 39.8% compared to five years ago, while average farm income increased by 50.2%.
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