The Latest: July - 2021
While US milk output is down from the peak volumes reported in April and May, it is still historically strong. USDA’s Dairy Market News cites strong demand for cheese across the nation but butter and powder orders begin to soften. Weather and Washington way heavy on demand of corn and soybean crops.
The beginning of October is a key time in the dairy industry as buyers start placing holiday orders and markets begin to move the way we always expect them to ahead of a more festive time of year. But a mild summer kept milk supplies longer than normal deeper into the season. Even rallying butter prices lost their momentum. Will a somewhat strange end to the summer lead to any surprises in markets toward the tail end of this year?View report
We’re in the thick of the summer doldrums. It’s expected during these mid-summer weeks that dairy markets do not move much. And they haven’t. But the doldrums don’t mean there’s nothing interesting going on. Dairy industry observers are intrigued by notably sluggish retail and consumer cheese sales even though summertime usually means those sales should be peaking.View report
By far the most noteworthy dairy market at the moment is butter. While butter typically peaks in late summer and early autumn, a surge in domestic spot prices that began in mid-April continues, sending prices from $2.0625 to over $2.7000 per pound by mid-June. And there’s no sign —at least for now— that indicates prices may fall back in the coming weeks. So how high will butter go?View report