The Latest: May - 2024
The Bulls Run Wild in Chicago With Life-of-Contract Highs
The bulls ran wild in Chicago this week. For both Class III and Class IV milk, June through December futures notched life-of-contract highs. Dairy producers are cashing a pitiful April milk check but looking forward to much more prosperous times ahead.
View Report
Almost all products rallied at the Global Dairy Trade (GDT) auction on Tuesday. However, in Europe dairy product prices continue to slip. Heat is also taking a noticeable toll on milk yields and components in much of the United States.
View reportAfter some late-June fireworks, the dairy markets fizzled in the first two weeks of July. The mercury has climbed, the storms have abated, and the grain markets have climbed. Farmers were initially relieved to have a break from the spring deluge, but now – with the exception of those in parts of Nebraska – they are praying for rain.
View reportThere is no surplus of cheap milk in the traditional cheese states, which has likely slowed production of commodity Cheddar. It’s possible that European vendors don’t have enough cheese in inventory to satisfy foreign demand. If that’s the case, the bulls might take up residence in the dairy pits for a while.
View reportThe cheese markets are heating up, and this time barrels are not left out in the cold. The USDA Cold Storage report reveals the largest April-to-May drawdown on record. Despite lower production in the Midwest and Northeast, milk seems to be widely available. Cheap spot milk has encouraged cheese processors to top up their vats.
View reportBuyers doused a little lighter fluid on the barrel market, helping to narrow the still-wide deficit to block prices. They still have a lot of ground to make up. Strong volume at these higher prices suggests cheese demand is firm. The dairy market recovery could continue for a while.
View reportU.S. dairy product exports fell well short of the record-high volumes set in April 2018. Rising prices, the strong dollar, and increasingly acrimonious trade relationships combined to stifle foreign buyers’ appetite for dairy products made in America. Still, year-to-date exports are the third-highest ever. For dairy producers, feed quality and availability may be a bigger issue, especially for forage.
View report