The Latest: April - 2024
Cheese Market Surge: Class III Futures Rally
Class III futures came roaring back this week, led by a sizable rally in the cheese markets. USDA’s Dairy Market News reports that domestic cheese demand is perking up. Grocery shoppers have embraced the advent of grilling season with shopping carts full of ground beef and all the fixings for cheeseburgers.
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USDA announced that it would end the Farmers to Families Food Box program after May, squelching hopes surrounding the government spending that propelled the cheese and Class III markets to unsustainable heights in 2020.
View reportNearly all products gained ground at the CME spot market with the exception of Whey. The other spot dairy products moved decisively upward.
View reportWith milk production expected to stay strong, dairy product production will continue to be robust. This aggressive production threatens to overhang the market unless demand can demonstrate a meaningful and sustained expansion.
View reportCheese manufacturers report that demand has improved from both domestic and international sources. Even with improved demand, supply remains more than ample and inventories are growing.
View reportMilk is undeniably long and with the spring flush imminent in most parts of the country, supplies are expected to remain plentiful. Yet even as milk remains abundant, demand has also perked up, helping to keep markets in balance. Butter manufacturers report that domestic demand has been healthy while the spot whey market continued to reach new heights, setting another record this week.
View reportOver the past year, the dairy markets have exhibited extreme volatility, adjusting to drastic shifts in both supply and demand. Consumer behaviors are shifting back towards something that resembles pre-pandemic times.
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