If you’ve been following the Chicago Mercantile Exchange, you may have noticed some exciting developments on Tuesday. The combination of constant and rising pricing presents a lot to analyze. Dive in with us and discover what it all means for you.
Dry whey is stable at $0.5650, with two sales confirming the figure. It symbolizes steadiness, which you could appreciate in these uncertain times. Meanwhile, cheese blocks and barrels remained steady at $2.14 and $2.25, respectively. There are no new transactions to announce here, but sometimes, no news is good.
And then there is butter. Butter prices have risen by $0.0225 to $3.1975, setting new yearly highs. That’s a significant increase, with thirteen sales from $3.1975 to $3.22. Nonfat dry milk (NDM) climbed by $0.0175, reaching $1.3150. Thirteen transactions were also registered, with values ranging from $1.3050 to $1.3175. These moves might indicate a strong trend that will continue for some time.
Daily CME Cash Dairy Product Prices ($/lb.)
Final
Change ¢/lb.
Trades
Bids
Offers
Butter
3.1975
+2.25
13
4
3
Cheddar Block
2.1400
NC
0
0
0
Cheddar Barrel
2.2500
NC
0
0
2
NDM Grade A
1.3150
+1.75
13
3
7
Dry Whey
0.5650
NC
2
4
4
Weekly CME Cash Dairy Product Prices ($/lb.)
Mon
Tue
Current Avg.
Prior Week Avg.
Weekly Volume
Butter
3.175
3.1975
3.1863
3.159
16
Cheddar Block
2.14
2.14
2.14
2.082
7
Cheddar Barrel
2.25
2.25
2.25
2.225
1
NDM Grade A
1.2975
1.315
1.3063
1.279
27
Dry Whey
0.565
0.565
0.565
0.561
2
Weekly CME Cash Dairy Product Prices ($/lb.)
Mon
Tue
Current Avg.
Prior Week Avg.
Weekly Volume
Butter
3.175
3.1975
3.1863
3.159
16
Cheddar Block
2.14
2.14
2.14
2.082
7
Cheddar Barrel
2.25
2.25
2.25
2.225
1
NDM Grade A
1.2975
1.315
1.3063
1.279
27
Dry Whey
0.565
0.565
0.565
0.561
2
CME Futures Settlement Prices
Mon
Tue
Class III (SEP) $/CWT.
22.54
22.55
Class IV (SEP) $/CWT.
22.27
22.59
Cheese (SEP) $/LB.
2.205
2.194
Blocks (SEP)$/LB.
2.14
2.14
Dry Whey (SEP) $/LB.
0.54
0.54
NDM (SEP) $/LB.
1.2775
1.3045
Butter (SEP) $/LB.
3.1995
3.2175
Corn (SEP) $/BU.
4.24
3.6725
Corn (DEC) $/BU.
3.86
3.925
Soybeans (SEP) $/BU.
9.6075
9.695
Soybeans (NOV) $/BU.
9.81
9.8775
Soybean Meal (SEP) $/TON
312.2
317.3
Soybean Meal (DEC) $/TON
308.1
312.4
Live Cattle (OCT) $/CWT.
176.98
179.18
Trading commodities futures and options entails considerable risk. Investors must carefully balance these risks with their financial status. Although we obtained the material from credible sources, it has not been independently confirmed. This article represents the author’s viewpoint, not necessarily that of The Bullvine, and is meant as a solicitation. Remember that previous performance does not guarantee future outcomes.
How do record butter trades and rising cheese prices affect your farm? Read on to find out.
Summary: Dairy farmers are optimistic about the economic outlook, with a 1% increase in retail sales in July and a 2.9% rise in the Consumer Price Index. This suggests a slowing inflation and a 0.1% increase in the Producer Price Index due to decreasing service costs. This could lead to the Federal Reserve decreasing interest rates, potentially reducing borrowing rates and providing new investment opportunities. Increases in cheese blocks and barrels have led to a surge in butter transactions, impacting Class III and ‘all cheese’ futures. However, mixed economic statistics cause uncertainty for dairy farmers, as people and companies tighten their belts, leading to decreased demand for dairy products. Internationally, uncertainty may slow down exports as customers wait for more stable economic conditions. Dairy farmers should pay off debt, save money, be cautious with investments, and stay informed about market developments.
U.S. retail sales increased by 1% in July, beating expectations.
The Consumer Price Index (CPI) rose by 2.9% year-over-year, indicating slowing inflation.
Goldman Sachs has raised the probability of a recession to 41%, up from 29% earlier this year.
Surges in cheese and butter trades could bring both opportunities and challenges for dairy farmers.
Potential lower borrowing rates as the Federal Reserve might cut interest rates due to slowing inflation.
Mixed economic data prompts caution in investments and the need to stay informed about market developments.
Did you see the record-breaking butter transactions in Chicago yesterday? Yes, you heard it correctly! A record 51 cargoes of spot butter changed hands, causing headlines and driving spot prices to $3.1450 per pound. This unprecedented activity in the butter market could indicate a surge in demand, potentially leading to higher profits for dairy farmers. And don’t forget about the skyrocketing cheese prices—blocks may cost up to $2.1000 per pound. These high cheese prices could also mean increased revenue for dairy farmers. Have you ever thought about what these developments entail for your dairy farm? In times like these, remaining informed might mean the difference for your company. The present economic environment is a rollercoaster, and being current on the latest trends and statistics can help you manage it effectively. Let’s examine what’s happening and why it’s essential for your dairy company.
Economic Indicator
Value
Previous Value
Change
July Retail Sales
+1.0%
-0.2%
+1.2%
Consumer Price Index (CPI)
+2.9%
-0.2%
+3.1%
Producer Price Index (PPI)
+0.1%
-0.4%
+0.5%
Class III Milk Futures (Sep)
$21.30
$21.34
-0.04
Spot Butter Price
$3.1450/lb
$3.1200/lb
+0.0250/lb
Spot Cheese Blocks
$2.1000/lb
$2.0275/lb
+0.0725/lb
Spot Cheese Barrels
$2.2500/lb
$2.1650/lb
+0.0850/lb
Have You Been Following the Latest Economic Developments?
Have you been following recent economic developments? The recent news has been excellent, which bodes well for our farmers and the market. July recorded a healthy 1% increase in retail sales, much above the expected 0.3%. The Consumer Price Index (CPI) climbed 2.9% yearly, reaching its lowest level since March 2021 and indicating that inflation may finally be slowing. Furthermore, the Producer Price Index (PPI) increased by just 0.1% from June due to decreasing service costs, below expectations.
What does this mean to you? It may clear the way for the Federal Reserve to decrease interest rates at its forthcoming September meeting. This potential interest rate decrease might reduce borrowing rates, making it cheaper for you to finance your operations and potentially providing new investment opportunities. Watch these developments; they might boost the dairy business’s needs!
What’s Going On with the Dairy Markets Lately?
Product
Price per Pound
Change
Volume
Spot Butter
$3.1450
+0.025
51 loads
Spot Cheese (Blocks)
$2.1000
+0.0725
4 loads
Spot Cheese (Barrels)
$2.2500
+0.085
1 load
Class III Futures (Sep)
$22.05 / cwt
+0.75
Limit Up
Class III Futures (Oct)
$22.40 / cwt
+0.75
Limit Up
What’s going on in the dairy markets lately? If you’ve been following recent patterns, there’s some exciting news! CME cheese markets have continued their upward trend, with cheese blocks and barrels showing considerable increases. Blocks of cheese jumped to $2.10 per pound, up $0.0725, while barrels witnessed an even more enormous surge, up 8.5 cents to $2.25 per pound.
But that is not all. Butter transactions grabbed news for their historic volume. Yes, you read it right: 51 cargoes of spot butter changed hands in a single day, establishing a new record since daily trading started in 2006. This spike lifted spot butter prices to $3.1450 a pound, up 2.5 cents.
So, what does this imply for Class III and ‘all cheese’ futures? September and October Class III contracts increased to $22.05 and $22.40 per hundredweight, respectively, reaching the maximum (+75 cents). Similarly, the ‘all cheese’ futures hit the limit (+7.5 cents) at $2.1480 and $2.1780 per pound, respectively.
This fantastic activity in the dairy markets indicates that demand is skyrocketing, accompanied by a strong push in retail and export markets. If you’re in the dairy industry, it’s time to be vigilant and change your plans in reaction to these changing patterns. By staying informed and adapting your strategies, you can navigate these market shifts with confidence.
Mixed Economic Data: A Roller Coaster for Dairy Farmers
Mixed economic statistics might be like riding a roller coaster, right? One minute, you’re up; the next, you’re down. Goldman Sachs has even raised the chance of a recession to 41%. So, what does this uncertainty imply for you, the dairy farmer?
For starters, when people and companies are concerned about the future, they tighten their belts. Instead of eating out, individuals are cooking more at home. This move impacts food service sales, lowering demand for the dairy products you offer to restaurants and cafés.
Internationally, uncertainty also slows down exports. If customers overseas wait for more stable economic circumstances, they may purchase less imported cheese and butter. This low demand might hurt your bottom line.
Monitoring market developments and adapting accordingly is critical in times like these. Proactive behavior may help you withstand the storm of economic instability.
Feeling the Uncertainty? You’re Not Alone.
However, there are strategies to traverse these turbulent seas.
1. Pay Off Debt: Start by addressing high-interest debts. It relieves financial stress and frees up cash flow for future use.
2. Save Money: Establishing a cash reserve is critical. Plan for at least three to six months of operational expenditures. This may be a lifeline in uncertain times.
3. Be Cautious with Investments: Avoid making significant capital expenditures until essential. Before committing, thoroughly evaluate the ROI.
4. Stay Informed: Follow market developments and economic indicators. Understanding what’s going on may help you make better judgments. Websites such as the U.S. Bureau of Labor Statistics provide helpful information.
Remember, the goal is to remain adaptable and prepared for whatever happens next. Financial restraint today might pay out handsomely later.
The Bottom Line
We’ve witnessed an increase in U.S. retail sales and a tiny rise in the Consumer Price Index, which has boosted stock markets and foreshadowed a possible Federal Reserve interest rate drop. Nonetheless, contradictory economic indications have led many to wonder what lies next. Dairy markets fluctuate, with significant changes in CME spot cheese and butter volumes. The data emphasizes the problems and possibilities associated with economic uncertainty.
Staying educated and adaptive is essential as you manage these challenges. With shifting pricing and changing customer behavior, planning is vital. So, how will you prepare your farm for the following difficulties and opportunities?
Trading commodity futures and options come with substantial risk. Think about your financial situation carefully before diving in. While we believe our sources are reliable, we have yet to verify all the information independently. These are the author’s opinions and not necessarily those of The Bullvine. This is meant for informational purposes, not to guarantee future results.
Find out how higher cheese prices and lower grain costs can increase your dairy farm profits. Ready to boost your earnings today?
Summary: Have you noticed the recent surge in cheese prices? CME cheese markets are on the rise with blocks hitting $2.0200 per pound, marking a two-cent increase, and barrels reaching $2.1600 per pound, a seven-cent jump. This uptick is the highest since October 2022. Meanwhile, butter prices took a slight dip to $3.1200 per pound. These changes in dairy markets are shaking things up! Spot cheese prices gave Class III futures a slight boost with Q4 rising to $20.93 per hundredweight, up eight cents. Meanwhile, Class IV prices climbed to $21.52 per hundredweight, adding 12 cents. The dairy industry is facing market changes that could impact profitability. Cheese prices have reached their highest since October 2022, boosting profits for dairy farmers. However, soybeans fell below the $10 mark and corn contracts dropped to $3.7775 a bushel. Reduced feed expenses can help dairy farmers increase profit margins. To stay ahead, dairy farmers should consider increasing cheese production, hedging bets with Class III futures, managing feed costs wisely, and understanding historical trends and external factors shaping dairy and grain markets.
Cheese prices have surged to their highest since October 2022, with blocks at $2.0200 per pound and barrels at $2.1600 per pound.
Butter prices have dipped slightly to $3.1200 per pound.
Spot cheese prices have boosted Class III futures, with Q4 prices at $20.93 per hundredweight.
Class IV prices also rose to $21.52 per hundredweight, driven by strong cheese market performance.
Grain markets saw a decline, with soybeans falling below the $10 mark and corn contracts dropping to $3.7775 per bushel.
Reduced feed expenses present an opportunity for dairy farmers to improve profit margins.
Strategies for dairy farmers: Increase cheese production, leverage Class III futures, manage feed costs, and stay informed about market trends.
Have you ever considered how the newest market developments can affect your bottom line as a dairy farmer? Well, be ready, as the present cheese and grain markets have shocks that can significantly impact your profitability. With blocks increasing to $2.0200 per pound and barrels reaching their highest price since October 2022 at $2.600 per pound, cheese prices are rising. Given Q4 climbing to $20.93 per hundredweight, spot cheese prices have somewhat raised Class III futures. Class IV costs have increased to $21.52 in the meantime. Grain prices are dropping while milk futures are rising. The declining prices of soybeans and maize might impact feed expenses. Are you ready to optimize your earnings by negotiating these changes in the market?
Product
Current Price per Pound
Change
Volume Traded
Blocks of Cheese
$2.0200
+2 cents
6 loads
Barrels of Cheese
$2.1600
+7 cents
3 lots
Butter
$3.1200
-2 cents
11 loads
Class III Futures (Q4)
$20.93 per hundredweight
+8 cents
–
Class IV Futures (Q4)
$21.52 per hundredweight
+12 cents
–
Soybeans (August)
$9.8900 per bushel
-23 cents
–
Soybean Meal Futures (Sept-Dec)
Below $300/ton
–
–
Corn (Nearby Contract)
$3.7775 per bushel
-5.5 cents
–
Have You Noticed the Recent Changes in the Market? Cheese is Getting Pricier!
Have you seen the current market changes? Cheese prices are rising! While barrels shot to $2.600 per pound, the most since October 2022, blocks of cheese have touched $2.0200 per pound. For a dairy farmer, these increasing rates indicate increased profits.
However, that is not all! Grain markets are sliding as cheese prices rise. Soybeans came under the $10 level, while the local corn contract plummeted to $3.7775 a bushel. These declining grain prices might cut your feed expenses.
What do these market changes mean for your dairy farm? The combination of lower grain prices and higher cheese prices presents a significant opportunity to increase your profitability. By closely monitoring these market changes and making appropriate plans, you can position your farm for increased earnings.
Wondering What This All Means for You? Let’s Break it Down with Some Numbers:
What does this all mean for you? Let’s break it down with some numbers:
Cheese Prices: Barrels have shot up to $2.600 per pound, while blocks have ascended to $2.0200 per pound. These rates have not been this high since October 2022, indicating a significant increase in profitability.
Butter Prices: Butter did not do well; it dropped two pennies to $3.1200 per pound.
Milk Futures: Class III futures raised spot cheese prices; Q4 prices increased to $20.93 per hundredweight. Prices in Class IV rose to $21.52 per hundredweight.
Soybean and Corn Markets: The August soybean contract sank from $10 to $9.8900 a bushel. September through December, soybean meal futures fell short of $300 a ton. Corn didn’t buck the trend, falling to $3.7775 a bushel.
As a dairy farmer, these figures reflect substantial shifts, and it’s crucial for you to stay updated and adapt accordingly.
Well, These Changes Could Be a Goldmine for Dairy Farmers Like You
These developments may be a gold mine for dairy producers like you. Allow me to dissect it. Rising cheese costs imply extra bucks per pound for your goods. With blocks reaching $2.0200 per pound and barrels rising to $2.600 per pound, you are looking at some of the best gains since October 2022.
Higher cheese prices immediately increase earnings since it affects the milk price used in cheese manufacturing. Class III futures cost $20.93 per hundredweight and have benefited somewhat. Thus, the milk you utilize for cheese-making gets you more incredible rates. The Class IV futures, which rose to $21.52 per hundredweight even though butter prices dropped somewhat, reflect the same pattern.
They are concerned about how this would affect your feed expenses. The good news is right here. Slipping grain markets implies you will pay less on feed. Both maize prices and soybean futures are declining. The neighboring corn contract dropped to $3.7775 per bushel, while the August soybean contract dropped to less than $10. Reduced feed expenses can help your profit margins even more.
So, What’s Next for You as a Dairy Farmer in Light of These Price Changes?
What’s Next for You as a Dairy Farmer in Light of These Price Changes?
Consider Increasing Cheese Production: Now could be the ideal moment to concentrate more of your efforts on cheese manufacturing, given blocks at $2.0200 per pound and barrels at $2.1600 per pound. This might involve changing your cow’s nutrition to maximize milk quality for cheese, investing in cheese processing equipment, or investigating new kinds to satisfy consumer demand.
Hedge Your Bets with Class III Futures: Since Class III futures slightly increased, consider locking in these rates to guarantee your income for the following quarters. This might provide a safety blanket against further price swings.
Manage Feed Costs Wisely: Examining your feed expenses is a perfect opportunity since grain prices are sliding mostly in soybeans and corn. Could you buy in bulk at these reduced rates to ensure your herd always has enough? Control of feed costs can help to increase your profit margins.
Review Financial Planning: Given the rising Class IV charges and declining grain prices, now might be an excellent time for a financial check-up. Make sure your budget fits current market circumstances; next, look at financing choices that could provide better terms because of the improved state of the dairy industry.
Maintaining knowledge and adaptability will make a big difference in these fast-changing times. Your dairy farm may leverage these changes in the market to bring significant benefits by carefully modifying your financial plans and output level.
Understanding the Bigger Picture: How Historical Trends and External Factors Shape Dairy and Grain Markets
Knowing the history of the grain and dairy markets would help one understand present pricing movements. Traditionally, variations in feed costs, weather, and supply and demand dynamics have all affected dairy prices. For example, cheese prices peaked in October 2022 before steadily declining; until lately, they have bounced back to exceed $2 per pound.
Other outside elements are also in action. Trade agreements, customer preferences, and geopolitical developments may disturb the market’s stability. For dairy and grain goods, for instance, the trade conflicts between the United States and China caused significant market disturbances.
Conversely, seasonal trends, including planting and harvest seasons and worldwide supply chain problems, significantly affect grain prices. Usually, the spring and summer planting seasons mark the peaks in soybean and corn prices. However, excellent weather conditions, rising crop yields, and an overabundance in the market have helped explain the declining trend in grain prices in recent months.
Monitoring previous patterns and outside variables can help you, as a dairy farmer, better predict market changes and make wise company choices.
The Bottom Line
Now, here is the deal. Rising cheese prices boost Class III futures so that you can find some possibility for higher income there. Although butter prices did drop, Class IV prices did not significantly change. Conversely, grain markets are contracting, which can result in less feed expenses for you. Your dairy farm may benefit financially from these developments. Still, do not rely only on your laurels. Watch these market trends, be educated, be flexible, and, if feasible, seek possibilities. Remain aware. Though the industry constantly changes, you can keep ahead with the proper knowledge and proactive attitude.
Why are dairy farmers stunned by the latest surge in cheese and lactose prices? How will this affect your bottom line? Read to find out.
The recent Global Dairy Trade Event 361 has left dairy producers reeling as cheese and lactose prices soared unexpectedly, with the GDT Price Index rising 0.5%. Lactose rose 16.1% (US$928/MT), mozzarella rose 8.4% (US$4,580/MT), and cheddar rose 1.3% (US$4,275/MT), whereas butter and skim milk powder fell 2.4% and 2.7%, respectively.
Product
Index Change
Average Price (US$/MT)
Average Price (€/MT)
AMF
+1.2%
$6,912
€6,303
Butter
-2.4%
$6,489
€5,917
BMP
+3.4%
$2,756
€2,513
Ched
+1.3%
$4,275
€3,898
LAC
+16.1%
$928
€846
MOZZ
+8.4%
$4,580
€4,177
SMP
-2.7%
$2,539
€2,315
WMP
+2.4%
$3,259
€2,972
At the center of the event, the GDT Price Index rose by 0.5%. The actual shock came with the significant price increases for cheese and lactose. Cheddar cheese prices increased by 1.3% to an average of US$4,275/MT (€3,898/MT), while lactose costs soared by 16.1% to US$928/MT (€846/MT). These reforms will undoubtedly have an impact on dairy producers throughout the globe.
Other dairy items received mixed reviews during the event. Anhydrous milk fat (AMF) prices rose by 1.2%, averaging US$6,912/MT (€6,303/MT). However, butter prices fell by 2.4%, with an average price of US$6,489/MT (€5,917/MT). Buttermilk powder (BMP) increased by 3.4%, averaging US$2,756/MT (€2,513/MT). Meanwhile, mozzarella prices rose 8.4% to US$4,580/MT (€4,177). Skim milk powder (SMP) and whole milk powder (WMP) had varied outcomes, with SMP falling 2.7% to US$2,539/MT (€2,315) and WMP rising 2.4% to US$3,259/MT (€2,972).
So, what does this imply for you, the dairy farmer? Increasing cheese and lactose prices may increase your income if you manufacture them. However, rising expenditures may impact your production expenses. Are you ready to navigate these changes? It is critical to remain informed and adjust your plans properly.
The Global Dairy Trade (GDT) events are crucial in determining worldwide dairy pricing and functioning as a predictor of market trends. Fonterra, a central dairy cooperative, plays an integral part in these events by supplying crucial price bids. The varied findings of the recent GDT Event 361 reflect the dynamic character of the global dairy industry, which is constantly impacted by various variables, including supply chain interruptions, changing consumer wants, and global economic situations.
The Global Dairy Trade event has resulted in substantial changes, particularly with rising cheese and lactose costs. As a dairy farmer, remaining knowledgeable and adaptive is essential for managing these swings. How will you adapt your methods to take advantage of these market shifts? To stay ahead, monitor upcoming events and industry trends.
Summary:
The Global Dairy Trade Event 361 has concluded with modest fluctuations in the GDT Price Index, which increased by 0.5%. Notable changes include a 1.2% increase in Anhydrous Milk Fat (AMF) and a significant 16.1% rise in Lactose (LAC), with other dairy products like Butter and Skim Milk Powder (SMP) experiencing declines. Fonterra’s data reveals average price adjustments across various products, with the Lactose index’s surge standing out. These developments highlight the complexities and ongoing shifts within the global dairy market amid persistent challenges from the COVID-19 pandemic and varying impacts across different regions, including New Zealand, China, and major European countries.
Key Takeaways
GDT Event 361 concluded with a slight increase in the GDT Price Index, up by 0.5%.
Significant increases were recorded for Lactose (up 16.1%) and Mozzarella (up 8.4%).
Prices for Butter and Skim Milk Powder experienced declines, down by 2.4% and 2.7%, respectively.
Cheddar and Whole Milk Powder saw modest price increases of 1.3% and 2.4% respectively.
Technological advancements, consumer behavior, and globalization are key drivers in the evolving dairy market.
Emerging markets offer growth opportunities but also bring challenges like local regulations and competition.
Adaptation and innovation are crucial for manufacturers to meet changing consumer preferences and succeed in the market.
Why have Brazilian milk prices been rising for eight months? What’s behind this trend, and how are farmers gaining? Find out now.
Have you noticed the steady climb in Brazilian milk prices lately? You’re not alone. As dairy farmers, keeping an eye on these trends is crucial. So, what’s causing this persistent rise in milk prices? Let’s dive into the numbers to find out.
Month
Net Price (BRL/liter)
Percentage Increase
January 2024
2.6120
2.1%
February 2024
2.6336
0.8%
March 2024
2.6711
1.4%
April 2024
2.7015
1.1%
May 2024
2.7178
0.6%
June 2024
2.7524
1.3%
Milk prices in Brazil have risen for the ninth month in a row. In June, prices rose by 1.3% from May to an average of BRL 2.7524 per liter, a 3.25% rise over June last year. However, the average price in the first half of 2024 is BRL 2.46 per liter, 14.3% cheaper than in 2023.
So, what’s driving this price increase? Despite problems such as delayed harvests in the South and dry weather in the Southeast and Central West, milk output is increasing. Farmers have invested substantially in animal feed as revenues have increased recently. The Cepea Milk Output Index (ICAP-L) increased by 4.14% in June, indicating a considerable output surge.
But wait, there’s more. Dairy product imports increased by 22% from May to June, reaching 182 million liters. Although this figure is 14% lower than the same time last year, it is still 1.4% higher than the first half of this year.
Together, these factors have contributed to the constant rise in milk costs. However, the smaller gain in June might indicate that the market is stabilizing. Farmers should consider these changes and how they can impact their operations.
The present increase in milk prices is advantageous for Brazilian producers. However, maintaining abreast of market trends is critical. Production gains and growing imports are essential measures to monitor. Investing in animal nutrition and effective agricultural practices will be crucial to maintaining profitability.
Summary:
The rise in milk prices in Brazil offers promising prospects for producers, though the minor increase in June suggests potential market stabilization. Farmers must stay informed on market trends, production levels, and import activities. Strategic investments in animal nutrition and efficient farming practices could ensure sustained profitability.
Key Takeaways:
June marks the eighth consecutive monthly rise in Brazilian milk prices, albeit at a slower rate.
The average price of BRL 2.7524/liter in June represents a 1.3% increase from May and 3.25% higher than in June 2023.
Despite the rise, the average price of BRL 2.46/liter for the first half of the year is 14.3% lower than last year.
Increased milk production, driven by investments in animal nutrition, has contributed to this trend.
The Cepea Milk Production Index (ICAP-L) rose by 4.14% in June.
Dairy imports increased by 22% from May to June, totaling 182 million liters.
First semester purchases of dairy products are 1.4% higher than last year, despite the June import total being 14% lower than last year.
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