Market Reports

The bulls were put out to pasture this summer, grazing in paddocks far from LaSalle Street. But fall is here, and they are back home enjoying a high energy ration, pushing several markets to their highest price in months.

Soaring temperatures in much of the country and unusually humid conditions in the Southwest added up to a lot of stress. National average milk yields fell short of year-ago levels, an exceptionally rare occurrence.

According to the National Oceanic and Atmospheric Administration, the U.S. just suffered its hottest summer ever. Soaring temperatures weighed on milk yields and tightened supplies as heat stress accumulated late in the summer and into September.

The Global Dairy Trade (GDT) auction kicked things off with bang and all products gained significant ground. Cheesemakers are running at their usual pace, as long as they can find the staff to do so and demand remains healthy.

CME spot butter jumped 9ȼ this week. July butter production fell 0.8% short of the frantic pace of July 2020, but was still historically high. There is plenty of butter socked away to last through the fall and holiday baking season.

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.