Market Reports

The steep December selloff was a necessary correction and was not the start of a sustained downtrend. With the exception of butter, dairy demand is outpacing supply and supporting dairy product prices.

CME spot Cheddar barrels dropped to a 10-month low but came roaring back. The powder markets firmed as well.

Milk yields and components remain high while an unsettled market tries to digest the holiday excess.

Revenues improved throughout the year. Although not sufficient to undo years of financial distress, it is the highest revenue since 2014 and worthy of celebration.

The market did its job, encouraging production, discouraging sales, and returning to equilibrium at more sustainable values.

Pass the egg nog, please. USDA announced the highest Class III price in five years. That’s a lot of Christmas cheer heading for dairy producers’ mailboxes. The butter market, however, is suffering a holiday hangover.