The Latest: April - 2024
Dairy Markets Swing Back and Forth
The dairy markets swung wildly back and forth this week as they digested a slew of data and headlines. Monday’s Milk Production report showed that milk output declined for a ninth straight month and while milk output was already slipping in the Southwest before avian influenza began to impact dairy herds there this spring, it seems likely that the illness exacerbated the decline.
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Heat, humidity, and smoke are sapping milk yields around the nation. Higher Class I sales from coast to coast, coupled with sweltering temperatures, has tightened milk supplies noticeably. Meanwhile, students are back in school and all are eligible for free lunches with a carton of milk on the side.
View reportThere is an abundance of milk in both the United States and Europe, but momentum is slowing. The combination of summer temperatures and back-to-school demand has tightened milk supplies noticeably.
View reportThe spot Cheddar block market found the gas pedal this week, moving convincingly upward. Spot block prices closed higher than the previous session on four out of the week’s five trading days. Yet, as cheese prices moved up at the CME this week, dry whey prices moved down.
View reportEven as cheese production has slowed, balancing operations continue to press forward at a steady clip. Dryers have also continued to run solidly, absorbing available condensed skim. As a result, supplies of nonfat dry milk (NDM) are plentiful but demand from both domestic and international sources has kept tension in the market. Milk production continues to dissipate seasonally but volumes remain plentiful overall.
View reportAlthough this year’s losses have none of last year’s frenzy, the ink is just as red. But it may be a while before lower prices translate to less milk.
View reportWhile 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.
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