Discover the latest trends in milk and cheese markets. Prices are steady, but what does this mean for your grocery bill? Find out how it impacts your budget today.

The milk markets , while not making significant strides, are showing a steady upward trend. This stability is a positive sign for our stakeholders, indicating a predictable market. In the cheese markets, we saw a peaceful scenario, with blocks settling at $1.9375 per pound, up $0.0025, and five lots exchanged. Barrels held at $2.0100 per pound with three loads traded. Butter was also steady today at $3.1050, with no lots sold. 

The Consumer Price Index, a crucial marker of market stability, surprisingly remained flat between April and May. This unexpected turn of events is sure to pique the interest of our stakeholders. However, it rose 3.3% from a year ago, which was slightly lower than the 3.4% forecasted by analysts. In May, grocery prices remained steady from April but saw a 1.0% increase year-over-year. The cost of eating out also saw a slight increase in May, with prices rising 0.4% month-over-month and 4.0% on the year. 

Let’s delve into the specifics of Class III and Class IV milk prices. Class III milk finished the day mostly unchanged, with June down a penny at $19.77, July up 7 cents to $20.60, and August at $21.07. Class IV milk was softer, with June at $21.15, July down 20 cents to $21.35, and August at $21.50/cwt. These details will help our stakeholders understand the current market conditions and plan their strategies accordingly.

Key takeaways:

• Cheese market prices have shown minimal changes, with blocks at $1.9375 per pound and barrels at $2.0100 per pound.
• Butter prices remain steady at $3.1050 per pound.
• The Consumer Price Index held flat between April and May, increasing by 3.3% year-over-year.
• Grocery prices in May were unchanged from April but climbed by 1.0% compared to the previous year.
• Eating out became marginally more expensive in May, with a 0.4% month-over-month increase and a 4.0% rise year-over-year.
• Class III milk prices remained mostly unchanged, with slight variations across different months.
• Class IV milk prices showed a slight downward trend for June and July.

Summary: Milk markets are showing a steady upward trend, indicating a predictable market for stakeholders. Cheese markets are experiencing a peaceful scenario with blocks at $1.9375 per pound, barrels at $2.0100 per pound, and butter at $3.1050. The Consumer Price Index remained flat between April and May, slightly lower than analysts’ forecast of 3.4%. Grocery prices remained steady from April but saw a 1.0% increase year-over-year. The cost of eating out also saw a slight increase in May, rising 0.4% month-over-month and 4.0% on the year. Class III and Class IV milk prices have remained mostly unchanged, with Class III milk down a penny in June, July up 7 cents to $20.60, and August at $21.07. These details will help stakeholders understand the current market conditions and plan their strategies accordingly.

Cash dairy prices held steady to higher levels amid light trading activity Friday on the Chicago Mercantile Exchange. Here’s a quick glance at the movements: 

“Dry whey saw a slight uptick, gaining $0.0175 to settle at $0.47. Two sales were logged at $0.46 and $0.47 respectively.”

• Dry Whey: Increased by $0.0175 to $0.47 with two sales recorded at $0.46 and $0.47.
• Cheese Market: Remained quiet. Forty-pound cheese blocks held steady at $1.8450, and no sales were recorded.
• Cheese Barrels: Unchanged at $1.9550, with no sales recorded.
• Butter: Regained most of Thursday’s losses, climbing $0.0425 to $3.0925. One sale was recorded at $3.10.
• Nonfat Dry Milk: Unchanged at $1.1950, with no sales recorded.

This mix of steady and upward movements reflects the market’s cautious approach on the day. How will this trend evolve? Stay tuned for more updates.

Today’s dairy market saw significant movements, especially in Class III milk prices. May Class III milk was released at $18.55, while Class IV finished at $20.50. This marked a day where Class III milk experienced a limit move lower. Traders were early sellers ahead of the dairy products trade at 11 am CST. 

Class III milk prices tumbled further: June fell 35 cents to $19.50/cwt, July dropped 72 cents to $20.15/cwt, and August declined 73 cents to $20.36/cwt. The balance of 2024 Class III milk followed suit, dropping between 28 to 44 cents. 

Class IV milk also faced losses. June dropped 3 cents to $21.31, July went down 33 cents to $21.65, and August decreased by 48 cents to $21.77/cwt. 

“Grain prices continued to drop, with corn sliding due to good rain in the Midwest to $4.39 ¼ in July and $4.59/bu at harvest. Soybeans slipped only a penny and ¾ to $11.77/bu, while soybean meal rose by $2.00 to $359.50/ton.”

Find out why cheese prices are leveling off. See the main reasons behind this trend and what it means for the market. Want more details? Keep reading.

Two major factors have been influencing the recent stabilization of cheese prices after a significant rally. CME spot cheese prices surged from mid-March and peaked in mid-May but have since returned to sustainable levels. According to the esteemed analyst, Betty Berning, with her deep understanding of the market dynamics, this correction will likely hold through the summer, with a seasonal increase expected in the fall. 

“The recent price run-up can be attributed to strong export demand,” Berning explained. “In early 2024, U.S. cheese prices were significantly lower than those in Oceania and Europe, prompting international buyers to purchase substantial quantities of U.S. cheese.” 

In March, U.S. cheese exports hit an unprecedented record of 121.3 million pounds, with fresh and grated cheeses, particularly mozzarella, seeing strong demand. After hitting a low of $1.3925 per pound in mid-March, CME block cheese prices rose to $1.98 per pound by May 17, while barrel prices increased to $2.125 per pound. 

Cheese production also declined due to tighter milk supplies, with 3.53 billion pounds produced year to date, down 1% from the same period in 2023. This decline has helped prevent inventory build-ups. 

• Export demand: As prices rose, export demand diminished. Berning noted that U.S. prices are now similar to those in Oceania and the EU, excluding freight costs. With shipping costs factored in, U.S. products become less competitive, reducing exports.
• Inventory management: Reduced production has prevented significant inventory increases. Limited milk supplies due to fewer U.S. milk cows and heifer replacements add to the complex supply situation, potentially supporting prices in the short term.

Key Takeaways:

• Cheese prices witnessed a significant increase from mid-March to mid-May 2024, driven by robust export demand.
• U.S. cheese exports reached a record high of 121.3 million pounds in March, especially for fresh and grated cheese like mozzarella.
• Production decreased by 1% year-to-date, compared to the same period in 2023, due to tighter milk supplies.
• Cheese prices have cooled since mid-May, with barrel prices dropping 18.5 cents and blocks falling 17 cents by May 31.
• Future price trends may depend on factors like milk supply, export competitiveness, and potential new cheese production capacity.

Summary: Cheese prices have stabilized after a significant rally, with CME spot cheese prices returning to sustainable levels. Analyst Betty Berning predicts this correction will continue through the summer, with a seasonal increase expected in the fall. The recent price increase is attributed to strong export demand, with U.S. cheese prices being significantly lower than those in Oceania and Europe. In March, U.S. cheese exports reached an unprecedented record of 121.3 million pounds, with fresh and grated cheeses, particularly mozzarella, seeing strong demand. CME block cheese prices rose to $1.98 per pound by May 17, while barrel prices increased to $2.125 per pound. Cheese production also declined due to tighter milk supplies, with 3.53 billion pounds produced year to date, down 1% from 2023. Export demand diminished as prices rose, and limited milk supplies due to fewer U.S. milk cows and heifer replacements contributed to the complex supply situation, potentially supporting short-term prices.

Facing rising costs and scarcity, dairy producers struggle to meet market demands. How will these challenges impact milk production and prices? Discover insights here.

The dairy market faces significant challenges and economic pressures. Milk scarcity is evident due to a limited supply of heifers and diseases like avian influenza. Rising production costs are making it challenging for dairy producers to sustain operations. To provide a comprehensive understanding of these dynamics, including fluctuating milk prices, production trends, and the broader impacts on the global dairy industry, we refer to the highly respected T.C. Jacoby Weekly Market Report.

Mounting Milk Demand Strains Dairy Producers Amidst High Costs and Health Challenges 

The demand for milk and dairy products is surging, but dairy producers face significant hurdles in ramping up milk production. The financial incentive, which refers to the potential for increased profits, is clear, with Class III milk prices near $20 per cwt. However, the scarcity and high cost of replacement heifers are significant obstacles. At the recent Pipestone, Minnesota auction, top-quality springers fetched $2,550 to $2,900 per head, reflecting the hefty investments producers are willing to make. 

Health crises like avian influenza, particularly in Idaho and the Great Lakes states, have had a significant impact on the dairy industry. Producers have had to keep lower-end milk cows in the herd longer to sustain output, even as slaughter volumes have dipped since Class III prices rose above $19 in early May. This situation underscores the severity of the disease outbreak and its implications for the dairy market. 

The USDA’s revisions to March milk production and cow numbers paint a complex picture. While cow numbers briefly rebounded in March, the decline in April highlights ongoing challenges from herd dispersals and animal health issues. The national dairy herd was 9.34 million head in April, down 74,000 from last year, with the Southwest seeing suppressed milk output and modest growth in the Midwest. These factors have contributed to the current state of the dairy market, and understanding them is crucial for dairy producers and industry stakeholders. 

Dairy producers are not just weathering these pressures, but also adapting to fluctuating global market demands, especially from China. Despite the obstacles, they are striving to meet the growing demand for milk and dairy products, demonstrating their resilience in an unpredictable production environment. 

The Scarcity of Heifers: A Formidable Obstacle for Dairy Producers Amid Rising Costs

The scarcity of heifers has become a significant obstacle for dairy producers, driven by dwindling supply and rising acquisition costs. This was evident at last week’s auction in Pipestone, Minnesota, where top springers ranged from $2,550 to $2,900 per head. With Class III milk prices near $20 per cwt., many producers are compelled to pay these high prices to keep their barns full. 

While advantageous, high-Class III milk prices also contribute to the problem. They encourage producers to retain lower-end milk cows longer, potentially impacting national milk yields. Additionally, these prices have led to a further decline in cull rates in early May, underscoring the market’s scarcity and high demand for heifers.

Strategic Herd Adjustments: Balancing Production Levels at the Expense of National Yield Averages 

Dairy producers are not just adjusting their herd management practices, they are doing so strategically amidst surging demand and escalating costs. They are retaining lower-end milk cows longer, a crucial step in maintaining production levels, even though this could potentially suppress national average milk yields. This approach underscores their ability to navigate high heifer costs and disease outbreaks, highlighting their strategic acumen in the face of complex challenges.

Market Dynamics, Health Crises, and Their Impact on Slaughter Volumes and Cull Rates

The current market dynamics, which include factors such as fluctuating milk prices, disease outbreaks, and global trade policies, have significantly influenced slaughter volumes and cull rates, presenting a complex scenario for dairy producers. Slaughter volumes have declined since September, and the trend has intensified in May as Class III milk prices surged past $19 per cwt., leading to even sharper drops in cull rates. 

Avian influenza has further complicated critical milk-producing regions like Idaho and the Great Lakes states. Producers must cull portions of their herds post-infection, boosting cull rates and straining milk production capacity in these critical areas. 

Farmers are retaining lower-end milk cows, which refers to cows that are less productive or have health issues, and deferring culling to maintain herd sizes. This strategy is likely to impact national average milk yields negatively. The economic drive to keep barns full and health challenges reducing herd sizes highlight the delicate balance between market forces and health crises shaping the dairy industry.

Mixed Trends in Milk Production Amidst USDA Revisions and Regional Disparities 

Milk production trends are not straightforward. USDA revisions indicate that while April’s milk output was slightly below last year’s levels at -0.4%, March had a smaller decline than first reported. Cow numbers bounced back in March but dipped again in April, with the herd at 9.34 million head, 74,000 fewer than in April 2023. Regional differences are apparent, with the Southwest facing constraints from dairy dispersals and avian influenza, while the Midwest saw modest growth. Overall, the drop in cow numbers and ongoing health issues are exerting pressure on national milk production, illustrating the intricate nature of the market dynamics.

Wild Swings in Futures Prices Reflect Persistent Market Volatility

Milk and dairy product futures experienced notable volatility this week. By week’s end, nearby Class III futures had declined significantly but remained higher than the past 18 months. The June contract closed at $19.88 per cwt., down $1.58 from last Friday’s peak. Deferred Class III futures showed little change overall. 

In contrast, Class IV futures added 20ȼ to 30ȼ, ranging from $20.57 in May to $22.47 in November, indicating a more stable, upward trend. These price movements reflect the ongoing uncertainty and dynamic conditions in the dairy markets, which include factors such as global trade policies, weather conditions, and disease outbreaks, all of which can significantly impact dairy prices and production.

This Week’s International Market Dynamics Reveal a Mixed Yet Optimistic Scenario for Milk and Dairy Products 

This week’s international market dynamics reveal a mixed yet optimistic scenario for milk and dairy products. The latest Global Dairy Trade (GDT) auction showed surging prices for whole and skim milk powder, with 2.9% and 3.5% increases, respectively. However, China’s absence as a major buyer remains a significant factor. 

China’s reduced dairy imports continue to challenge the global dairy trade. Imports of milk powder and whey are down sharply compared to last year, marking the slowest start to Chinese SMP imports since 2018. This trend impacts the market, which has been hoping for a rebound in China’s import activity to drive up prices. 

Chinese consumers increasingly turn to domestic dairy products, supported by USDA analysts in Beijing, who project a 7% annual growth in Chinese milk production from 2020 through 2023, with 1.3% additional growth expected in 2024. This rise in domestic production has curbed China’s demand for imported milk powder, prompting dairy exporters to seek new markets. 

Nonetheless, other global buyers’ increased activity at the GDT auction kept prices buoyant, reflecting solid demand. This engaged participation could stabilize prices despite China’s lagging imports. These evolving dynamics will be critical as the industry navigates the complexities of international trade and production capacities.

China’s Dairy Market: A Paradigm Shift Towards Domestic Production Amidst Declining Import Volumes

The Chinese dairy market is undergoing notable shifts. Import volumes of milk powder and whey are down, lagging significantly behind last year. Specifically, skim milk powder (SMP) imports through April hit a low not seen since 2018, signaling a drop in demand for foreign dairy products. 

This decline contrasts with a surge in domestic production. USDA analysts in Beijing report that Chinese milk output grew by about 7% annually from 2020 to 2023, with expectations of another 1.3% increase in 2024. This rapid expansion highlights a strategic move by Chinese consumers toward domestically sourced dairy, reshaping local and global dairy markets.

Spot Market Highlights: NDM Climbs Amid Supply Anxieties, Whey Stumbles on Ample Inventories, Butter Soars on Robust Demand

This week, the CME spot market recorded significant price movements for nonfat dry milk (NDM), whey powder, and butter. NDM prices rose by a penny, reaching $1.175 per pound, the highest in nearly three months, driven by concerns over milk supplies for Class III milk volumes expected later in the spring and summer. 

On the other hand, spot whey powder declined by 1.5 cents, settling at 40 cents per pound. This drop reflects high U.S. inventories amid slow export demand, particularly from China. Persistent sluggishness in Chinese whey imports keeps stockpiles ample, exerting downward pressure on prices. 

Butter prices continued their impressive climb, rising by 5.25 cents to a record-setting $3.1225 per pound. This surge is fueled by robust demand and relatively inexpensive cream that keeps churns active. Yet, a recent increase of 44 million pounds in butter inventories from March to April may stabilize prices as buyers gain confidence in ample future supplies. Cold storage held 361 million pounds of butter at the end of last month, a 9% increase from the previous year. 

In summary, while NDM prices rise amidst supply anxieties, whey powder prices fall due to substantial inventories and slow export demand. Butter surges on high demand and plentiful cream, though growing inventories may stabilize prices. These trends highlight the intricate balance of supply, demand, and market sentiment in the dairy sector.

Cheese Markets Experience Notable Price Adjustments Amid Robust Domestic Demand and International Trade Dynamics

The cheese markets saw a sharp decline from last week’s highs. CME spot Cheddar barrels dropped 14.5ȼ to a still elevated $1.98 per pound, while Cheddar blocks fell 7.25ȼ to $1.87 per pound. Despite this, domestic cheese demand is rising, driven by retailers making cheese more affordable. 

On the international front, cheese imported months ago is shipping out, reducing inventory levels. By the end of April, stocks were at 1.46 billion pounds, down 0.6% from last year. This decrease had briefly pushed prices above $2.00 per pound. Still, with falling global orders, the market is finding a better balance between supply and demand.

The Bottom Line

This week’s T.C. Jacoby Market Report unveils a challenging terrain for dairy producers. Strategic herd adjustments are necessary to face surging heifer costs and avian influenza. Market volatility persists, affecting Class III and IV futures. Internationally, China’s shift toward domestic dairy and reduced imports marks a notable change, impacting global markets. Domestically, rising cheese demand and high butter prices offer some respite. Staying attuned to these trends is essential for making informed decisions and navigating the dairy market’s complexities.

Key Takeaways:

• The demand for milk is extremely high, but the expansion of production is hindered by the scarcity and high cost of heifers.
• Slaughter volumes have decreased significantly since September, further dropping in early May when Class III milk prices increased.
• Milk output in April was 0.4% lower than the previous year, with USDA revising March estimates to show a brief rebound in cow numbers before a decline in April.
• Futures prices for both Class III and Class IV milk remain volatile, with notable fluctuations observed throughout the week.
• Internationally, milk and dairy product prices are generally up, but global cheese values remain flat, and China’s buying activity has yet to recover to previous levels.
• On the domestic front, NDM prices are rising amid concerns about milk supply, while whey prices have dipped due to ample inventories.
• Butter prices continue to soar, reaching record highs for this time of year, while cheese prices have adjusted downward after a recent peak.
• A significant rally in wheat futures has influenced corn and soybean markets, reflecting broader agricultural trends.

Summary: The dairy market is grappling with economic challenges, including milk scarcity due to a limited supply of heifers and diseases like avian influenza. Rising production costs are making it difficult for dairy producers to sustain operations. The demand for milk and dairy products is surging, but producers face significant hurdles in ramping up milk production. Financial incentives like increased profits are clear, but the scarcity and high cost of replacement heifers are significant obstacles. Health crises like avian influenza have forced producers to keep lower-end milk cows in the herd longer to sustain output. The USDA’s revisions to March milk production and cow numbers reveal a complex picture, with cow numbers briefly rebounding in March but declining in April. Despite these challenges, dairy producers are adapting to fluctuating global market demands, particularly from China. The scarcity of heifers and high-Class III milk prices encourage producers to retain lower-end milk cows longer, potentially impacting national milk yields. The latest Global Dairy Trade (GDT) auction showed surging prices for whole and skim milk powder, but China’s absence as a major buyer remains a significant factor.

Discover the latest insights from Global Dairy Trade Event 355, where the GDT Price Index rose by a significant 1.8%. Curious about what this means for the dairy industry? Dive in to find out.

If you’re keeping an eagle eye on the global dairy trade, we’ve got some fresh figures to share with you straight from Fonterra. Their latest price quotes reveal a mixed bag of increases and decreases across the various dairy indices. Let’s dive right into the creamy details. 

AMF Index saw a moderate increase of 1.2%, bringing the average price to US$7,124/MT (€6,611/MT).

The butter-lovers will be pleased, as the Butter Index went up by 2.1% and has an average price of US$6,593/MT (€6,118/MT).

For those monitoring the BMP Index, there was an increase of 1.7%, with the average price now standing at US$2,545/MT (€2,362/MT).

An exciting climb was seen in the Ched Index, going up by a robust 8.0%, hence pushing the average price to US$4,257/MT (€3,950/MT).

Unfortunately, the LAC Index has seen a slight dip of 1.3%, bringing its average price down to US$739/MT (€686/MT).

Cheese enthusiasts rejoice: the Mozz Index has risen by 2.3%, settling the average price at US$3,840/MT (€3,564/MT).

A marginal rise occurred in the SMP Index by 0.4%, with an average price of US$2,551/MT (€2,367/MT).

Lastly, the WMP Index is up by 2.4%, boasting an average price of US$3,350/MT (€3,109/MT).

Remember, these market shifts represent the pulsating, changing face of the global dairy trade. Keep this information at hand as you navigate your way in this ever-evolving market.

Summary: Fonterra’s latest price quotes show a mixed trend across various dairy indices. The AMF Index saw a moderate increase of 1.2%, bringing the average price to US$7,124/MT (€6,611/MT). The Butter Index increased by 2.1%, reaching an average price of US$6,593/MT (€6,118/MT). The BMP Index saw a 1.7% increase, reaching US$2,545/MT (€2,362/MT). The Ched Index saw an 8.0% increase, reaching US$4,257/MT (€3,950/MT). The LAC Index saw a slight dip of 1.3%, bringing its average price down to US$739/MT (€686/MT). The Mozz Index rose by 2.3%, reaching an average price of US$3,840/MT (€3,564/MT). The SMP Index saw a marginal rise of 0.4%, while the WMP Index rose by 2.4%. These market shifts represent the ever-changing face of the global dairy trade.

Discover how US dairy production fared in March. Did your favorite cheese see a production boost? Uncover the latest stats on cheese, butter, and frozen dairy products.

Here’s some good news for you! March has proven to be a bountiful month for dairy products with most of them witnessing a surge in production. According to the National Ag Statistics Service, total cheese output showed a delightful jump, rising by 7.6% over February and slightly above the production figures from March of 2023 by one-tenth of a percent. 

“Italian style cheese production was up 8.6% from February, putting out an impressive 518 million pounds, which is 4.4% more than a year ago. American style cheese production showed a 10% increase over February, although it was 2.9% below the past year’s March production figures, resulting in 491 million pounds.”

Butter saw a respectable rise of 5.5% from February and a 1.4% increase from a year ago with a whopping 209 million pounds. A special mention goes to the dairy farmers in Wisconsin, who topped the nation in Italian-type cheese production, churning out 145.4 million pounds in March alone. They were closely trailed by their counterparts from California. However, California outperformed in producing the most Mozzarella cheese, with a sizable 134 million pounds. 

 Wisconsin continued to rule the roost in Cheddar cheese production, accounting for more than 60.4 million pounds in March. Compared to last year, dry whey production rose by an encouraging 3.4%, whey protein concentrate production was up 2.6%, and lactose production also notched up slightly. 

 The production of frozen dairy products was predominantly up in March, with hard ice cream production rising 1.4% to deliver 66.1 million gallons. Sherbet production also swelled 1.3%, resulting in 1.88 million gallons while Frozen yogurt rose marginally by a tenth of a percent to reach 3.71 million gallons. However, low-fat ice cream production witnessed a slump, dropping 12.8% to 37.7 million gallons. 

Summary: March saw a significant increase in dairy product production, with total cheese output rising by 7.6% compared to February. Italian-style cheese production increased by 8.6%, while American-style cheese production increased by 10%. Butter production also saw a rise of 5.5% and 1.4% from February. Wisconsin dairy farmers topped the nation in Italian-type cheese production, while California outperformed in Mozzarella cheese production. Wisconsin continued to dominate in Cheddar cheese production, accounting for over 60.4 million pounds. Frozen dairy product production also increased, with hard ice cream production rising 1.4% and frozen yogurt reaching 3.71 million gallons.

Discover how stabilizing supply is driving up European milk prices. Will this trend continue? Dive into our insightful analysis to find out more.

With a fresh spring in their step, nearly all European dairy companies offered a higher payout to their suppliers in March, compared to the colder month of February. The wave of change swept across the continent lifting the average European advance milk prices to an impressive 44.47 Euros per 100 kg in the month of March, offering a gainful increase of 0.39 Euros against the preceding month. This eye-opening detail is illuminated from the international milk price comparison conducted jointly by EDF and ZuivelNL, featuring sixteen heavyweight European dairy companies. 

Compared to 2023, milk prices have taken a dip by 3.63 euros or a substantial 7.5 percent in March

This decrease, however, did not stand in the way of some notable highs! With a robust plus of 1.50 Euros, it was the German dairy giant Hochwald that signed off on the highest milk price increase in March. On the flip side, the French Sodiaal and the British Saputo Dairy UK were the only members of this stellar line up to lower their milk price. Interested in the full milk price comparison for March 2024? If so, click here! 

Now for the nitty-gritty! These prices are applicable to an average supply of 1 million kg of milk boasting 4.2% of fat and 3.4% of protein. Such supply should have a germ count of up to 24,999 and a cell number up to 249,999. It’s also worth noting that these prices are quoted exclusive of VAT. 

On a different note, the European milk supply landscape underwent a noteworthy change in its dynamics. For the first time after a few turbulent months, the European milk supply found its footing and became stable in February, this factoring in the leap year correction. The French dairy market registered a small, yet encouraging increase in its milk supply, while Germany held its ground. Poland, on the other hand, continued to display powerful growth. 

Ireland, however, followed a different track with a 16 percent drop in milk supply in February

The same downward trend was also observed in the Netherlands, where the milk supply struggled to pick up the pace. From the fall period of September, the country’s milk supply has followed a downward trajectory. This trend was maintained in March, as dairy intake dipped by 1.3 percent. Industry insider ZuivelNL attributes this slump to the unfortunate outbreak of the Bluetongue virus and the ongoing grading of the derogation, which in turn led to farmers keeping fewer cows.

Summary: In March, European dairy companies offered higher payouts to their suppliers, with the average European advance milk prices reaching 44.47 Euros per 100 kg. This increase of 0.39 Euros compared to February was revealed in an international milk price comparison conducted by EDF and ZuivelNL. Milk prices have dropped by 7.5% compared to 2023, but some notable highs were recorded, such as the 1.50 Euro increase by German dairy giant Hochwald. French Sodiaal and British Saputo Dairy UK were the only dairy companies to lower their milk prices. The European milk supply landscape experienced a significant change in dynamics, with the French dairy market experiencing a small increase in its milk supply, while Germany held its ground. Poland continued to show growth. However, Ireland experienced a 16% drop in milk supply in February, while the Netherlands experienced a downward trend from September. Industry insider ZuivelNL attributes this slump to the outbreak of the Bluetongue virus and the ongoing grading of derogation, leading to farmers keeping fewer cows. The prices are applicable to an average supply of 1 million kg of milk with 4.2% fat and 3.4% protein, and are quoted exclusive of VAT.

Discover why milk futures and dairy prices are soaring on the Chicago Mercantile Exchange. Uncover the factors driving this trend in our latest analysis.

On a bright and busy Friday, milk futures and cash dairy prices took a welcome climb at the bustling Chicago Mercantile Exchange. June Class III milk responded positively, rallying up $0.31 to reach a solid $19.21. Not to be outdone, July followed suit with a buoyant $0.21 increase, settling at a comfortable $19.26. 

It wasn’t just the heart of summer enjoying this boost. August also benefitted from this positive trend, inching upwards by $0.10 to stand at $19.29. Meanwhile, September milk futures matched August’s rise, increasing by $0.05 to $19.29.

Notably, the contracts set for October through December ranged from rising four cents in October and December to an even higher ten-cent rise in November.

But it wasn’t all about the milk. Dry whey was up $0.0050 at $0.3950. In this bustling market, an impressive ten sales were recorded, ranging from $0.3950 to $0.40. Elsewhere, our ever-popular forty-pound cheese blocks enjoyed a minor uptick of $0.0025 to close at $1.79. Although only one sale was recorded, it was at an enviable $1.7875. 

As for the cheese barrels, they remained stable at $1.88. However, the market came alive as one sale was recorded at that price. Butter, on the other hand, added $0.0175 to its value, closing at an eye-catching $3.0750. Here, an impressive thirteen sales were recorded, the prices ranging from $3.0675 to $2.0950.

Nonfat dry milk, albeit experiencing a slight decline of $0.0050 to touch base at $1.11, still recorded two sales at $1.11 and $1.1150 respectively. 

All in all, it was a day of wins for milk futures and cash dairy prices. Only time will tell how this upward trend will play out in the coming days.

Summary: On Friday, milk futures and cash dairy prices experienced a positive trend at the Chicago Mercantile Exchange. June Class III milk rose $0.31 to $19.21, while July saw a $0.21 increase to $19.26. August also saw a $0.10 increase to $19.29, while September milk futures matched August’s rise. Contracts for October through December ranged from four cents in October and December to an even higher ten-cent rise in November. Dry whey increased $0.0050 to $0.3950, with ten sales recorded. Cheese blocks saw a minor uptick of $0.0025 to close at $1.79, while cheese barrels remained stable at $1.88. Butter added $0.0175 to its value, closing at $3.0750, with thirteen sales recorded. Nonfat dry milk experienced a slight decline of $0.0050 to touch base at $1.11, but still recorded two sales at $1.11 and $1.1150. Overall, it was a day of wins for milk futures and cash dairy prices.

Discover how Rabobank’s forecast of a 20% drop in Northwest Europe’s milk production could impact the dairy industry. Will your morning coffee be affected?

Wake up to the reality of a significant milk supply reduction in Northwest Europe over the next decade. According to a report by Rabobank, the dairy processing industry may need to grapple with a possible 13 to 20 percent reduction in milk supply. This presents an undeniable call for an evident revamp of existing strategies. 

What’s behind this downward shift? There are several contributing factors anticipated. Milk production in Denmark, Germany, Belgium, and the Netherlands is expected to structurally decrease due to stringent margins, environmental regulations, and labour market challenges. Compounded with this, the region is also likely to face the impacts of climate change, leading to weather extremes.

“Puch-boll companies should focus on high-quality products, such as high-quality protein ingredients, consumer branded items, and cheese,” says Richard Scheper, a Dairy Analyst at Rabobank.

Rabobank’s researchers have plotted two potential scenarios for the period leading up to 2035. The first anticipates a 13 percent reduction in milk supply, while the second, a drastic 20 percent decline. Whichever comes to pass, both outlooks signal an impending hit to cooperatives that will result in substantial income losses. 

So, what does this mean for the dairy processing factories? They’re staring at a steep slope, because the sharp decline will provoke overcapacity issues. In light of this, Rabobank suggests companies concentrate on high-quality products. Scheper advises firms to be proactive and prepare for any imminent financial challenges. 

One way to navigate through these tough waters? Consolidating milk processing capacity. This strategic shift could help smoothen out the impacts of the changing market landscape and the associated declining milk volumes.

Summary: The dairy processing industry in Northwest Europe is facing a 13 to 20 percent reduction in milk supply over the next ten years, according to a report by Rabobank. The decline is expected to be structurally impacted by tight margins, environmental measures, labor market challenges, and weather extremes. Two scenarios for the period up to 2035 have been calculated, with one scenario involving a 13% reduction and the other a 20% reduction. These scenarios will result in substantial income losses, primarily impacting cooperatives. Overcapacity and consolidation will be a major challenge for processing dairy factories, as overcapacity will arise. Dairy companies need to act proactively to prevent drastic changes and prepare for financial challenges, such as consolidating milk processing capacity.

Discover why milk futures at the Chicago Mercantile Exchange soared. Could a lower dollar and a butter-buying frenzy be the key drivers? Dive in to find out.

Brace yourself for some positively uplifting news from the financial sector. Milk futures on the Chicago Mercantile Exchange mostly ended in positive territory this past Thursday, primarily steered by a lower dollar and an unexpected butter-buying spree in the cash market. This trend was marked across several futures contracts, painting a promising picture for the dairy market. 

Here’s a deeper look into the specifics: 

• May Class III milk was slightly down, losing a penny to settle at $18.34.
• The value of June futures sprung up by 36 cents, ending at $18.90.
• July futures also rose, going up 23 cents to sit at $19.06.
• August saw an increase of 27 cents, finishing at $19.17.
• Futures for the months of September through November were improved as well, with increases ranging from 2 to 15 cents.

“These shifts, while seemingly small, indicate an optimistic trajectory for milk futures amidst fluctuating market conditions. Playing your cards right in this sector could potentially yield promising returns,” explains a seasoned market analyst.

Moreover, there was a notable movement in other dairy-related futures: 

• Dry whey rose by $0.0150 to cap at $0.3750.
• The value of blocks stepped up $0.02, to finish at $1.7875.
• Barrels also experienced growth, going up $0.0250 to land at $1.88. Seven trades were executed in the range of $1.8650 to $1.88 during the day.
• Butter leaped up $0.0525, with its value now being $3.0575. A total of twenty-three trades were completed ranging from $3.02 to $3.07.
• A drop was noticed in nonfat dry milk, however, which slid down $0.0075 to stop at $1.1175. Five sales happened during the day, ranging from $1.1125 to $1.1175.

In conclusion, amidst some small setbacks, it’s overall a hopeful picture for different categories in the dairy market.

Summary: Milk futures on the Chicago Mercantile Exchange ended mostly positive due to a lower dollar and a butter-buying spree on the cash market. Class III milk decreased by a penny, while dry whey increased by $0.0150, blocks by $0.02, barrels by $0.02, and butter by $0.0525. Nonfat dry milk fell by $0.0075.

Explore the paradox of the dairy industry: why does profitability remain elusive despite a dwindling milk supply? Unravel the dairy dilemma with us.

Spring has firmly arrived, and with it, a flurry of fieldwork commences a fresh season, with milk production at its seasonal peak. You, like many farmers, may be looking forward to June — dairy month — and the arrival of summer with a surge of ice cream demand associated with it. It’s the season that often promises higher milk prices fueled by a stronger demand. Yet, especially in the cheese market, prices have been stubborn, causing the Class III value to remain low and delaying any significant margin recovery. The rest of the year does show signs of milk revenues improving, but brace yourself for a slow recovery that will likely span months, not weeks. 

Globally, milk supply growth appears to continue its struggle, with the first quarter of this year reflecting trends seen in the second half of 2023 marked by weaker year-over-year production from the key exporting regions. As per forecasts by Rabobank, this low supply is expected to persist throughout the summer before volume starts ticking positive through the second half of 2024. 

“After two consecutive quarters of weaker supply, typically, a firmly bullish price response would have materialized. It’s what we saw during the output pullback in 2021 which was followed by record high prices in 2022 in some instances. This time, although milk production is lower, it’s counteracted by sluggish global demand, leaving the supply and demand balance relatively neutral.”

This reduced milk supply is shrugged off by global buyers due to their adequate inventories and ongoing macroeconomic concerns. Although demand signs are promising, it will still take time before prices rise. 

Cheese has primarily been dragging the U.S. market down this year. Starting the year in the $1.40s, both block and barrel cheddar ascended to the upper $1.60s at the CME spot market in February, only to retreat to calendar year lows by mid-March. Mid-April saw prices climbing again, but the supply-demand dynamics prevented any significant cheese price growth. Dry whey also hit a low in March and April, further pulling the Class III price down after showing signs of strength earlier this year. Nonfat dry milk has been maintaining rangebound prices, but Class IV has benefited from a notably firm butter price. 

Despite these factors, achieving dairy farm profitability remains misleading— a frustrating continuation of 2023’s challenges. But there’s reason for optimism too. Rabobank projects slow but steady dairy commodity price gains will materialize in the latter half of this year. Paired with lower expected feed costs, an improved margin outlook will eventually stimulate milk production growth in both the U.S. and other key exporting regions. This year might not set any record price highs, but farmers like you would surely welcome the much-awaited return to profitability.

Summary: Milk production is at its peak, with summer and ice cream demand expected to boost prices. However, cheese prices have been stubborn, causing low Class III values and delaying significant margin recovery. Milk revenues are improving, but a slow recovery is expected. Global milk supply growth is struggling, with weaker year-over-year production from key exporting regions in the first quarter of this year. Rabobank forecasts that this low supply will persist throughout the summer before positive volumes start in the second half of 2024. Global buyers shrug off reduced milk supply due to adequate inventories and ongoing macroeconomic concerns. Demand signs are promising, but it will take time for prices to rise. Rabobank projects slow but steady dairy commodity price gains will materialize in the latter half of this year. Milk production growth in the U.S. and other key exporting regions is expected to stimulate growth.

Discover why the USDA reports a significant drop in March 2024 milk production across top dairy states. What’s causing this decline? Find out more.

The US Department of Agriculture (USDA) has recently shed light on a notable decline in milk production across the major dairy states for the month of March in 2024. Data gathered by the USDA indicates that production in the 24 major dairy states landed at just about 18.8 billion pounds last month, drawing a drop of about nine-tenths of a percent compared to the same period in March 2023.

In March, the average production per cow hit the scales at approximately 2,115 pounds, which was down by nearly three pounds from the same period in the preceding year. Additionally, the number of cattle in these states saw a decrease of about 71,000 head, when compared to the previous year, settling at roughly 8.88 million head. This statistic also signifies a decrease of 7,000 cattle from the preceding month of February.

For the first quarter of 2024, milk production saw a marginal increase of one-tenth of a percent from 2023, reaching a total of 56.9 billion pounds. During this period, the US total milking herd stood at 9.33 million head, reflecting a decrease of 16,000 cattle from the fourth quarter of 2023 and 85,000 fewer cattle compared to the first quarter of 2023.

Despite the overall decrease, California maintained its position as the standout producer, with its 1.7 million head of cattle generating an impressive 3.6 billion pounds of milk. This was closely followed by Wisconsin with its 1.2 million head yielding 2.7 billion pounds. Michigan continued to lead the pack in terms of milk production per cow, with an average yield of 2,350 pounds.

Summary: The US Department of Agriculture (USDA) reported a significant decline in milk production across major dairy states in March 2024. The average production per cow was around 2,115 pounds, down by nearly three pounds from the previous year. The number of cattle in these states also decreased by 71,000 head from 8.88 million head to 8.88 million head. In the first quarter of 2024, milk production increased by one-tenth of a percent from 2023, reaching 56.9 billion pounds. However, the US total milking herd decreased by 16,000 cattle from the fourth quarter of 2023 and 85,000 fewer cattle compared to the first quarter of 2023. California remained the top producer, with 1.7 million head of cattle generating 3.6 billion pounds of milk. Wisconsin followed closely with 1.2 million head yielding 2.7 billion pounds. Michigan continued to lead the pack in terms of milk production per cow, with an average yield of 2,350 pounds.

Dive into our analysis of April’s FMMO milk class prices. Understand the mixed trends and the impact of falling protein value. Will this affect your dairy business?

As we roll into May, dairy producers can look forward to changes in the Federal Milk Marketing Order (FMMO) prices, with the April 2023 FMMO pooling estimates, uniform prices, and producer price differentials scheduled for release between May 11-14. However, a heads up for the dairy industry – it seems likely the April milk checks could show a bit of a dent. We’re seeing evidence of this in the FMMO milk class prices and notably in the lowest protein component value, which is hitting a 25-year low. But don’t worry – things are looking up for May. 

Let’s delve a little deeper. The FMMO Class II, III, and IV prices announced on May 1 showed some mixed results compared to a month earlier. A decline in the Class III milk price offset small gains for Class I, II, IV milk prices. Now, for those with an eye on milk pooling, you’ll see that a wider Class III-IV price spread is again supporting substantial Class IV depooling incentives. 

For our forward-looking folks, the April 2024 FMMO pooling estimates, uniform prices and producer price differentials (PPDs) will be released on May 11-14, with a summary to be provided on May 15. Be sure to stay updated with Progressive Dairy’s website for the latest news. Let’s get into those April class prices: 

• At $21.23 per hundredweight (cwt), the April Class II milk price saw an uptick of 11 cents from March and comes out $2.03 more than April 2023. In fact, it’s achieved its highest level since October 2023.
• Not so good news for the Class III milk price, falling 84 cents from March to a three-month low of $15.50 per cwt. That’s $3.02 less than April 2023.
• It’s a small gain for the April 2024 Class IV milk price, with a modest increase of just 2 cents from March, putting it at $20.11 per cwt. This is $2.16 more than April 2023, and it’s also the highest since November 2023.

A key factor potentially affecting FMMO pooling is the April 2024 Class IV milk price. It’s currently $4.61 more than the month’s Class III milk price, marking the widest spread since October 2023. Meanwhile, the April 2024 advanced Class I base price stood at $19.18 per cwt, a rise of 38 cents more than in March 2024 and 33 cents more than April a year ago, marking the first year-over year increase since January 2022-23. 

Contributing to the April milk class price calculations, the value of butterfat was up from the previous month, but the protein value declined to a historical low. The butterfat value increased almost a dime from March to about $3.33 per pound. Milk protein, however, fell 29 cents from March, down to just 83.5 cents per pound – the lowest since the FMMO reform began in 2000.

It’s not just protein facing a dip though; the value of nonfat solids was down about 2.5 cents, landing at 97.3 cents per pound, while the value of other solids took a 5 cent tumble, leaving it at 23.7 cents per pound. 

Looking ahead based on FMMO advanced prices and current futures prices, we keep our fingers crossed that the outlook for May milk prices should improve. Already announced, the May 2024 advanced Class I base price is $18.46 per cwt, which is lower by 72 cents from April 2024 and $1.11 less than a year ago, landing it at the lowest since February. On a positive note, trading on May 1 suggests uplift with the Chicago Mercantile Exchange (CME) Class III milk futures price closing at $18.35 per cwt for May, up a robust $2.85 from the April price. The Class IV milk futures price for May closed at $20.18 per cwt, up by 7 cents from April. If these Class III-IV futures prices hold, the May Class III-IV milk price gap will shrink to $1.83 per cwt. That’s a seven-month low, potentially reducing some incentives for Class IV depooling. 

Summary: Dairy producers can expect changes in the Federal Milk Marketing Order (FMMO) prices in May, with the April 2023 pooling estimates, uniform prices, and producer price differentials scheduled for release between May 11-14. However, it is likely that the April milk checks will show a dent, with evidence of this in the FMMO milk class prices and notably in the lowest protein component value, which is hitting a 25-year low. The April 2024 FMMO pooling estimates, uniform prices, and producer price differentials will be released on May 11-14, with a summary provided on May 15. The April Class II milk price saw an uptick of 11 cents from March, reaching its highest level since October 2023. However, the Class III milk price fell 84 cents from March to a three-month low of $15.50 per cwt, $3.02 less than April 2023. A small gain for the April 2024 Class IV milk price was just 2 cents from March, putting it at $20.11 per cwt, $2.16 more than April 2023 and the highest since November 2023.

Discover why milk futures on the Chicago Mercantile Exchange plummeted. Could rising feed costs and oversold positions be the culprits? Dive in to find out.

In yesterday’s trading session, milk futures on the Chicago Mercantile Exchange concluded on a down swing, feeling the pinch from rising feed costs and an oversupply of positions. A trend that clearly played out across various classes and products.

For instance, May Class III milk was down 13 cents, closing at $18.25. June didn’t fare any better, 24 cents lower, ending the day at $18.42. July saw a decrease of seven cents to finish at $18.83, while August fell by six cents closing at $18.92. Despite these trends, September through November contracts remained stable or increased marginally, by up to four cents.

However, it wasn’t all doom and gloom across the board. Some products managed to hold their ground or even climb slightly. 

• Dry whey stayed flat at $0.3750.
• Blocks had an increase of $0.02 to settle at $1.7675.
• Barrels stood firm, unchanged at $1.8550.
• Butter rose by $0.04 to cap off at $3.0050 after seven trades made between $3.00 to $3.0050.
• Nonfat dry milk experienced a slight growth of $0.0050 to close at $1.1250, with five sales executed at that same price.

This steady movement among certain dairy products suggests a more complex landscape than the general downtrend might indicate. One where ongoing market factors and individual commodities are interacting in unique ways. So, let’s take a closer look at what’s driving these trends and what they could mean for the future.

Summary: Milk futures on the Chicago Mercantile Exchange experienced a downturn due to rising feed costs and an oversupply of positions. Class III milk closed at $18.25 in May, while June and July saw decreases and increases. August saw a six-cent fall to $18.92. However, contracts from September through November remained stable or slightly increased. Some dairy products managed to hold their ground or climb slightly, such as dry whey at $0.3750, blocks at $1.7675, barrels at $1.8550, butter rising by $0.04 to cap off at $3.0050, and nonfat dry milk experiencing a slight growth of $0.0050 to close at $1.1250. This suggests a more complex landscape, where ongoing market factors and individual commodities interact in unique ways. Understanding the driving factors behind these trends and their implications for the future is crucial.

Discover why milk futures on the Chicago Mercantile Exchange surged on Tuesday amidst mixed cash trade activity. Dive into the details with us.

On Tuesday, there was a notable upturn on the Chicago Mercantile Exchange. Here’s where it gets interesting – milk futures actually continued to climb higher, even while cash trade settled in mixed activity. 

• May Class III Milk: Positioned 2 cents higher at $18.39.
• June: Climbed even more significantly, 45 cents higher at $18.70.
• July: Followed June’s growth trend, up 45 cents at $18.87.
• August: Added 37 cents, reaching $18.94.
• September through November contracts: These ranged between eight to 25 cents higher.

In other interesting news, dry whey remained unchanged at $0.3750, while ‘blocks’ dipped slightly by $0.0025 to $1.7475. It’s worth noting that there was a single transaction made at that price. Conversely, ‘barrels’ rose by $0.0825 to arrive at $1.8550, with one notable sale made at $1.8350. 

Butter managed to hold steady at $2.9650. Perhaps the crowning development, though, was nonfat dry milk, which pushed upwards by $0.01 to close the day at $1.12. 

The fluctuating figures for the different months and products not only highlight the changes in the market but also hint towards future trends. Knowledge of this multifaceted landscape is crucial in grasping the future of commodities trading.

Summary: Milk futures on the Chicago Mercantile Exchange rose on Tuesday, with Class III milk up 2 cents to $18.39. Cash trade settled in mixed activity, with contracts from September through November increasing eight to 25 cents. Dry whey remained unchanged, while blocks and barrels rose. Butter remained unchanged and nonfat dry milk increased $0.01 at $1.12.

In March, feedstuff and milk prices held steady, leading to a Dairy Margin Coverage (DMC) margin of $9.65 per hundredweight. This was a groundbreaking occurrence; it was the first time since December 2022 that these prices did not trigger a payment through the dairy risk management program. 

The United States Department of Agriculture‘s National Agricultural Statistics Service (USDA NASS) released its agricultural prices report on April 30, which included feed costs used to calculate these crucial DMC program margins and indemnity payments. We saw consistent feedstuff prices and a slight uplift in the all-milk price, which brought the average milk income margin to $9.65 per hundredweight. 

March 2024 DMC Margin Factors

Let’s take a quick glance at the March 2024 Dairy Margin Coverage program margin factors, compared to the previous month: 

• Alfalfa Hay: $271 per ton, a decrease of $7 per ton
• Corn: $4.36 per bushel, no change from February’s price
• Soybean Meal: $362.17 per ton, down by $1.46
• Total Feed Costs: $11.05
• Milk Price: $20.70
• Margin Above Feed Cost: $9.65

Source: USDA Farm Service Agency, National Ag Statistics Service and Ag Marketing Service – April 30, 2024 

All-Milk Price: A Minor Increase 

In March 2024, the announced U.S. average all-milk price was $20.70. Even though it was a dime more than the previous month, it was 30 cents lower than March of the previous year. That being said, a majority of the 24 major dairy states experienced a modest increase in milk prices, with several states seeing an improvement of 50 cents or less. Only two states, Georgia and Virginia, recorded increases of $1 or more while Idaho and Pennsylvania were the ones to witness a decrease in their milk checks from the previous month. 

Feed Prices Held Steady 

Notably, the national average costs for major feedstuffs remained relatively unchanged from February in the three categories used to calculate feed costs. These categories include corn, soybean meal, and dairy-quality alfalfa hay. 

Calculated Feed Cost Elements: 

“The DMC feed cost for each month is calculated by summing three numbers: (1) the corn price per bushel times 1.0728; (2) the soybean meal price per ton times 0.00735; (3) the alfalfa hay price per ton times 0.0137.”

2024 Enrollment Closed, Margin Forecasts for Remainder of Year 

As of April 29, enrollment for the 2024 DMC program closed. The past year witnessed the risk management program being used by 17,120 dairy operations. In total, these farms received nearly $1.3 billion in payments, averaging $75,654 per operation. As we look to the remainder of this year, the DMC forecast doesn’t anticipate margins below the $9.50 per hundredweight threshold, although markets do fluctuate. Stay tuned; the actual margin for April will be announced on May 31st. 

Explore our in-depth analysis on the slight rise in revenue and expenditure for US dairy farmers in March. Curious about the factors behind this trend? Dive in now.

Sometimes the details really do matter, and that’s particularly true in the world of dairy farming. Here’s some insight that’s fresh off the farm: U.S. dairy farmers found themselves a little bit better off in March than they were in February. It’s mostly a good news scenario, with just a few hitches thrown in. 

According to the USDA, the index of prices received by farmers was up 1.5%. This was mostly due to some gains across a range of products. Here’s a quick run-down: cattle, hogs, broilers, and lettuce all saw gains, which helped to offset losses in wheat, market eggs, oranges, and strawberries. 

The dairy index for March 2024 was slightly improved too, ending up 0.5% higher than February. Sounds like a win, right? But before we get too excited, it’s worth noting that it was 1.4% lower than in March 2023. The all milk price was at $20.70 per hundredweight, which was an increase of $.10 on the month – but again, it was down $.30 on the year.

Switching gears to what farmers are paying out, the index of prices paid rose 0.6%. This increase was mainly due to higher costs for feeder cattle, feeder pigs, gasoline, and nitrogen. On the bright side, there were some decreases to the costs of hay and forages, complete feeds, LP gas, and concentrates. Every little bit helps, right? 

Overall, it’s a bit of a mixed bag. Year to year, the index of prices received was down 4.8% while the index of prices paid was 1.1% lower. While some farmers continued to see their profits limited by relatively high input prices.

So, as you can see, being a dairy farmer is never simple or straightforward. But in this case, at least it seems that things are slightly on the upswing. Here’s hoping that continues for our hardworking farmers.

Summary: U.S. dairy farmers saw a 1.5% increase in prices in March compared to February, mainly due to gains in cattle, hogs, broilers, and lettuce. However, losses in wheat, market eggs, oranges, and strawberries were offset. The dairy index for March 2024 was slightly higher but 1.4% lower than in March 2023. The all milk price was $20.70 per hundredweight, an increase of $.10 on the month but down $.30 on the year. The index of prices paid rose 0.6% due to higher costs for feeder cattle, feeder pigs, gasoline, and nitrogen. Year-on-year, the index of prices received was down 4.8%, while the index of prices paid was 1.1% lower.