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July 2024 Dairy Exports Surge, Setting Records and Outpacing Previous Year’s Performance

Wednesday, September 4th, 2024

Explore how U.S. dairy exports are breaking records and surpassing last year’s numbers. How will these trends impact your dairy business? Learn more now.

Summary: This year has been nothing short of impressive for U.S. dairy exports. Despite fluctuations in some categories, overall growth remains strong, with cheese, whey, and nonfat dry milk all showing significant year-over-year increases. Cheese exports reached 88.7 million pounds in July, marking a new monthly high for the sixth time in 2024. Whey exports saw a 22.4% increase driven by Chinese demand, and nonfat dry milk exports hit a 14-month high, bolstered by record shipments to Mexico and an 80% surge to the Philippines. The sustained growth in these areas signals the U.S. dairy industry’s strength and presents promising opportunities for development and investment. However, the outlook for milk powder exports remains uncertain due to rising global prices and fluctuating U.S. output.

  • U.S. dairy exports vigorously grow across several categories, including cheese, whey, and nonfat dry milk.
  • Cheese exports hit 88.7 million pounds in July 2024, setting new monthly highs multiple times this year.
  • Whey exports increased by 22.4%, mainly due to rising demand from China.
  • Nonfat dry milk exports experienced a 14-month high with significant growth in markets like Mexico and the Philippines.
  • The U.S. dairy industry demonstrates robust potential for investment and expansion, offering promising opportunities for growth and development. This optimistic outlook is sure to inspire hope and confidence in the industry’s stakeholders.
  • Despite the overall positive trends, it’s important to note that milk powder export forecasts remain clouded by rising global prices and inconsistent U.S. production levels. This cautionary information is crucial for stakeholders to be aware of potential risks and make informed decisions.

By 2024, dairy exports aren’t just staying afloat—thriving. Month after month, U.S. dairy exports are making headlines and surpassing new benchmarks despite market ups and downs. This resilience underscores the strength of the U.S. dairy sector and should inspire confidence among all stakeholders. Diving into recent trends in dairy exports, mainly focusing on cheese, whey, and nonfat dry milk, we’ll explore why this matters. Understanding these patterns will help you make informed business decisions and possibly tap into emerging markets. In July, the U.S. shipped 88.7 million pounds of cheese abroad, marking a 9.4% increase from the previous year, according to USDA’s Global Agricultural Trade Systems. Keep reading to discover how this surge in dairy exports could impact your business and shape the global path for U.S. dairy products.

Export CategoryJuly 2023July 2024% Change
Cheese (million lbs)81.188.79.4%
Whey (million lbs)33.240.622.4%
Nonfat Dry Milk (million lbs)118.5130.310%

Dairy Export Trends: 2024 Marks a Year of Remarkable Growth 

With relation to dairy exports, 2024 looks to be a historic year. The most recent USDA Global Agricultural Trade Systems numbers show startling expansion in some dairy product categories.

July 2024 saw a significant milestone in U.S. dairy exports, with 88.7 million pounds of cheese being sent overseas, marking a 9.4% rise over the previous year. This increase, setting new monthly records for the sixth time this year, is a clear indicator of the growing demand for U.S. dairy products in the global market and a testament to the potential of the U.S. dairy industry.

In July, exports also saw a remarkable increase, rising by 22.4% yearly. The dramatic 34% increase in exports to China was a significant contributor to this spike, highlighting the increasing demand in Asian markets. This surge in exports to China clearly reflects the growing global demand for U.S. dairy products.

Notfat dry milk (NDM) also grew noticeably. In July, exports reached a 14-month high, surpassing last year’s level by 10%). Notably, sales to Mexico established a monthly record, up 20% from July 2023; exports to the Philippines jumped by an impressive 80%.

The vitality in these numbers emphasizes the worldwide performance of American dairy products, reflecting their quality. Cheese continues its strong performance, whey has mostly recovered, and NDM is still a necessary export good with great potential for expansion.

Sustained Growth in Cheese Exports: A Harbinger of Industry Strength 

Regarding cheese exports in 2024, we see a challenging trend to overlook. Comparatively to July 2023, July alone witnessed a startling 88.7 million pounds of U.S. cheese transported overseas—a 9.4% rise. These statistics represent the strength and resiliency of the U.S. dairy industry, not simply data on a chart.

More impressive, perhaps, is that, particularly to vital markets south of the border, this represents the 14th straight month of record-breaking exports. This steady rise emphasizes the growing worldwide demand for U.S. cheese and the sensible tactics American producers have used to satisfy it. Setting a new high every month shows U.S. cheese’s volume, quality, and dependability, which consumers all across like.

These figures should also be a sign of hope for dairy farming specialists. The rising trend presents opportunities for development and investment, opening doors to new markets. The regularity of these record-breaking months also points to a strong basis and implies that this trend is sustainable. As you review your company strategy, take advantage of this increase in cheese exports. How do you see this? Please let others know about your observations and experiences. This potential for business expansion and investment should inspire optimism and motivate industry professionals to seize these opportunities.

U.S. Whey Exports: 2024 Highlighting a Robust Recovery 

Considering the low 2023 standards, U.S. whey exports in 2024 have improved. The July exports jumped by 22.4% year over year. The 34% rise in exports to China is a notable engine of this expansion. This increase points to a noteworthy comeback and rising demand from one of the most significant worldwide marketplaces.

Export figures in 2021 and 2022 still fall short of those peak years. Still, the path of recovery shows a good change in 2024. Many elements probably help to explain this increase. First, whey is vital as high-quality protein products are increasingly sought after worldwide. Furthermore, the deliberate efforts of the U.S. dairy sector to improve traceability and quality have made U.S. whey a premium commodity.

This development has consequences beyond current sales numbers. First, it increases industrial confidence in reaching the Asian markets. Moreover, a steady increase in whey exports might open the path for more consistent pricing and help offset home supply changes. Professionals in dairy farming and related businesses should track these developments to modify their plans and seize the growing market prospects.

U.S. Nonfat Dry Milk Exports: A Rising Tide in the Global Market 

A notable increase in U.S. nonfat dry milk (NDM) exports has created ripples in dairy worldwide. With a 10% increase above the previous year’s volumes, July was a 14-month high in NDM exports. This represents the increasing demand for U.S. dairy goods and strategic orientation in critical global markets, not just a statistic. This increasing demand for U.S. dairy products should make all industry professionals proud and accomplished.

Mexico is still great; July exports show an all-time high—a stunning 20% rise from the previous year. This significant increase emphasizes solid trade ties and the demand for superior American dairy products.

The Philippines is another vital market with an 80% increase in NDM imports from the United States. This significant increase can be attributed to the expanding taste for American dairy products in Southeast Asia, indicating a growing market for U.S. NDM in the region.

Examining more general patterns, the U.S. NDM has a more significant advantage worldwide. Rising global pricing and China’s increasing purchases at recent Global Dairy Trade (GDT) auctions point to a decrease in milk powder stockpiles among important exporters and importers. This offers a unique opportunity for American goods to close the gap more clearly.

Still, there are some obstacles just waiting here. Reduced U.S. milk powder production might have restrictions; another element to watch is the recent rise in spot NDM pricing. U.S. milk powder pricing for German skim milk powder (SMP) and GDT SMP stayed throughout last year about 10ȼ below benchmark levels. However, recent rises in spot NDM rates have closed this difference and heightened the competitiveness for new businesses.

Stakeholders have to be alert even if chances for ongoing development abound. Quickly using these benefits and negotiating challenges will depend on closely observing market dynamics and world developments.

Mixed Signals in U.S. Milk Powder Export Forecast 

U.S. milk powder exports show mixed possibilities and difficulties in their projection. Rising worldwide pricing and higher Chinese buys at recent worldwide Dairy Trade (GDT) auctions point, on the one hand, to declining milk powder supplies of essential players. Under this situation, U.S. exporters could have fresh opportunities to fill the void.

The road ahead isn’t apparent, however. U.S. milk powder production has been somewhat poor, and the rise may hamper future sales in spot pricing for nonfat dry milk (NDM). U.S. milk powder costs were around 10ȼ below those for German skim milk powder (SMP) and GDT SMP for a good period—between September 2023 and July 2024—which gave it a competitive advantage. But that margin has dropped because of a late-summer surge in spot NDM prices.

This price rise compromises the competitive pricing edge, which makes it more difficult for American companies to get new contracts in a market growing competitive. Therefore, even if there are chances, especially with declining global stocks, U.S. exporters must carefully negotiate through these possible hazards. Strategic planning is thus essential for maximizing these trends without running into the related hazards.

The Bottom Line

When we consider the critical 2024 data points, it is evident that the U.S. dairy export industry is seeing excellent expansion in many different sectors. Cheese exports are setting records, indicating worldwide strong demand. However, whey sales to China and significant rises in nonfat dry milk exports to Mexico and the Philippines suggest other growing markets.

However, the milk powder export projection is still up for debate. While declining global stock and increasing prices should provide advantageous circumstances, changing U.S. production and competitive pressures could create difficulties.

What does all this mean for experts in the dairy business and farmers? There are chances for development and possible obstacles to negotiating in a developing export market. Leveraging these changes will depend primarily on being informed and flexible.

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EU Dairy Farmers Boost Milk Production While Dutch Farmers Face Decline: What This Means for Milk Prices

Friday, August 30th, 2024

EU dairy farmers boost milk production, but Dutch farmers see a decline. What does this mean for milk prices and your farm’s future?

Summary: As we delve into the first half of 2024, the landscape of milk production within the European Union reveals a complex mix of growth and decline. Overall, the EU’s dairy farmers have produced 1.0 percent more milk than last year’s last year, with Poland and France leading the charge. Conversely, countries like Ireland and the Netherlands are experiencing notable decreases in milk output, mirroring trends in other global dairy markets such as Argentina and Uruguay. Dutch farmers experienced a 3% drop in milk output in July, and the total milk volume is 1.6% lower over the first seven months of 2024, affecting milk pricing and market dynamics. Meanwhile, European milk prices surged 8 percent in July 2024, reflecting a volatile yet dynamic market environment. This multifaceted scenario prompts us to examine the intricacies behind these regional fluctuations and their broader implications for dairy farmers worldwide. Australia stands out in this global context, with a notable 3% increase in milk production, further influencing market dynamics.

  • EU dairy farmers produced 1.0% more milk in the first half of 2024 compared to 2023.
  • Poland and France significantly contributed to the increase in EU milk production.
  • Ireland and the Netherlands saw notable declines in milk output.
  • Global milk production trends show declines in Argentina, Uruguay, and the US, contrasting with growth in Australia.
  • Dutch milk output decreased by 3% in July and is 1.6% lower over the first seven months of 2024 than last year.
  • European milk prices rose 8% in July 2024, indicating a volatile market environment.
  • The fluctuations in milk production across regions have broader implications for global dairy markets and farmers.
European dairy farmers, milk production, European Union, Poland, France, Dutch farmers, milk output, milk pricing, market dynamics, pricing tactics, export potential, manufacturers, larger market, production, EU dairy output, Ireland, challenges, Netherlands, regional trends, worldwide trends, Australia, milk volume, milk prices, opportunities, profitability, farm management, veterinarian checkups, diet, cow habitats, technology, innovation, feed quality, climate change, grazing conditions, feed sources, agronomists, fodder systems, forage systems, weather patterns, sustain milk production levels.

Why are European dairy farmers increasing output while Dutch farmers are declining? In the first six months of 2024, EU dairy farmers produced 1% more milk than the previous year, with Poland and France leading the growth. In contrast, Dutch farmers face a 3% drop in milk output in July. Understanding these conflicting patterns is critical for anybody working in the dairy business since they directly influence milk pricing and overall market dynamics. This disparity may affect anything from pricing tactics to export potential. Staying ahead requires manufacturers to comprehend the larger market, locally and worldwide, and keep up with their production. So, what is driving these developments, and how can you remain competitive in such a turbulent market?

The Dynamic Landscape of EU Dairy Production: Comparing Growth and Decline 

In the intricate fabric of European Union dairy output, the first half of 2024 has woven a story of moderate but significant rise. The collective efforts of dairy farmers throughout the EU have resulted in a 1% rise in milk production compared to last year, showcasing a region-wide resilience to enhance milk supply despite various local challenges.

Poland has performed remarkably in this trend, contributing significantly to the EU’s total results. In June alone, Polish dairy producers increased output by an astonishing 4%, considerably increasing the EU’s total results. France also played a key role, with its production increasing substantially in June. Germany, a dairy production powerhouse, reported a tiny but encouraging increase compared to June 2023, adding to the total growth.

However, the success story is not universal throughout the continent. Ireland’s dairy industry has faced challenges, with June output falling by 1%. These challenges could be attributed to [specific factors such as weather conditions, feed expenses, or government policies]. Though this reduction is an improvement over prior months’ steeper declines, it contrasts sharply with improvements witnessed in other important dairy-producing countries.

Global Milk Production: A Story of Interconnected Declines and Surprising Growth

Milk production in the Netherlands is declining significantly, mirroring regional and worldwide trends. Dutch dairy producers witnessed a 3% decrease in July compared to the previous year. Over the first seven months of 2024, total milk volume is 1.6 percent lower.

This declining tendency isn’t limited to the Netherlands. Several major dairy-exporting nations throughout the world are facing similar issues. For example, Argentina’s milk production dropped 7% in June, while Uruguay’s plummeted 13%. The United States likewise recorded a 2% reduction in milk output over the same time.

In contrast, Australia is an anomaly, with a 3% increase in milk output, breaking the global declining trend. Such variances illustrate the many variables influencing dairy output across locations, emphasizing the significance of resilience and adaptation in the dairy farming business.

Rising Milk Prices: An Industry in Flux and What It Means for You 

Milk production changes are significantly influencing milk prices across the European Union. The 8% rise in milk prices in July 2024 over the same month in 2023 is strong evidence of this trend. When milk production declines, like in the Netherlands and Ireland, supply tightens, resulting in higher prices. This price rise is also influenced by [specific factors such as market demand or government policies].

Furthermore, the comparison of EDF and ZuivelNL milk pricing demonstrates this tendency. In July, most firms saw a rise in milk prices, with just a handful holding prices steady and one reporting a decrease. This reflects a more significant, industry-wide trend toward higher milk pricing, mainly owing to changing production levels.

Understanding these patterns can help dairy producers negotiate the market more effectively. Are you ready to adjust to the changes? Whether aiming to increase output or save expenses, remaining aware and agile will be critical in these uncertain times.

What’s Behind the Fluctuations in Regional Milk Production?

Have you ever wondered why certain places see a surge in milk production while others lag? When studying these different patterns, several variables come into play. Weather conditions are a crucial factor. Unfavorable weather may disrupt feed supplies and cow health, affecting milk output. On the other hand, favorable weather conditions might increase output rates. Have you recently faced any weather-related issues on your farm?

Feed expenses are also an important consideration. Rising feed costs discourage farmers from retaining big herds, reducing milk yield. Have you seen any swings in feed prices, and how have they impacted your operations?

Government policies also have a huge impact. Regulations governing environmental standards, animal welfare, and trade regulations might result in higher expenses or operational adjustments that may help or impede milk production. Have recent legislative changes in your nation affected your farm?

Market demand plays a pivotal role in shaping manufacturing decisions. Farmers are more likely to optimize productivity when milk prices are high. Conversely, low pricing might inhibit output, leading to reductions. Understanding and adapting to current market demand can empower your manufacturing strategy.

The Intricate Dance of Milk Production Trends: Balancing Opportunities and Challenges 

Dairy producers face both possibilities and problems as milk production patterns shift throughout the EU and worldwide. Higher milk prices, such as the 8% rise in July 2024, may significantly improve a farmer’s bottom line. This price rise offers a cushion to withstand rising manufacturing costs, and promises improved profitability. But remember the other side: sustaining or increasing output levels amidst variable supply is no simple task.

For many farmers, effectively managing their farms is critical to navigating these changes. Given the reported decreases in areas such as the Netherlands and Ireland, the focus should be on improving herd health and milk output. Regular veterinarian checkups, adequate diet, and stress-free cow habitats are essential. Adopting technology to improve herd management may simplify many of these operations.

Consider using data to track cow performance and anticipate any health concerns before they worsen. Automated milking systems, precise feeding methods, and real-time data analytics may all provide significant information. This proactive strategy not only assures consistent output but also improves the general health of your cattle.

Innovation in feed quality should be considered. Climate change impacts grazing conditions and feed quality; thus, diversifying feed sources to include nutrient-dense choices will assist in sustaining milk production levels. Collaborate with agronomists to investigate alternate fodder or forage systems tolerant to shifting weather patterns.

Finally, developing a supportive community around dairy farming is critical. Networking with other farmers via local and regional dairy groups, attending industry conferences, and participating in cooperative ventures may provide emotional and practical assistance. Sharing information and resources contributes to developing a resilient and adaptable agricultural community that meets current and future problems.

Although increasing milk prices provides a glimpse of optimism and possible profit, the route to steady and expanded output requires planning and competent management. Dairy producers can successfully navigate these turbulent seas and secure a sustainable future for their farms by concentrating on herd health, adopting technology, optimizing feed techniques, and developing communities.

The Bottom Line

As we’ve negotiated the changing terrain of EU dairy production, it’s become evident that regional discrepancies are distinctively influencing the business. The extreme disparities between nations such as Poland, which is increasing, and the Netherlands, which is declining, underscore the global dairy market’s complexity and interdependence. Furthermore, although some areas are suffering a slump, others, such as Australia, are seeing growth that defies global trends. European milk prices have risen during these developments, creating both possibilities and problems for dairy producers.

Today’s challenge is adjusting to the dairy industry’s altering trends. Staying informed and active with industry changes is critical for navigating this volatile market. As trends shift, your ability to adapt proactively will decide your success. Maintain industry awareness, embrace change, and prosper in uncertainty.

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Skyrocketing Milk Prices and Butterfat Levels Boost Earnings

Monday, August 19th, 2024

Find out how rising milk prices and high butterfat levels are driving up dairy farmers’ profits. Want to know the latest trends and stats? Read our in-depth analysis.

Summary: Have you been keeping an eye on your dairy margins lately? If not, you might be in for a pleasant surprise. August has brought about some noteworthy improvements for dairy farmers, particularly those who have invested wisely in their marketing periods. Profitability has seen a much-needed boost, with milk prices soaring and feed costs holding steady. Curious about the specifics? Let’s dive into the cheese market, where block and barrel prices have hit their highest since October 2022, driven by a drop in cheddar cheese production. This tightening of spot supplies has resulted in firmer prices and unique challenges and opportunities for dairy farmers. And there’s more—while milk production is down, butterfat levels and butter production are smashing records. Cheese production in June dropped 1.4% from the prior year to 1.161 billion pounds, with cheddar production down 9% from 2023 and marking the eighth consecutive monthly decline. This allows dairy producers to capitalize on these quality advances while navigating the challenges of decreased milk quantities. But it’s not just about dairy: changes in crop yields for corn and soybeans also influence feed costs, shaping the broader landscape of your financial well-being. According to the USDA’s August WASDE report, lower soybean meal prices may benefit dairy businesses as feed is a substantial expenditure. In conclusion, higher milk prices and stable feed costs have created an optimistic scenario for dairy margins. The recovery in the cheese market and rising butterfat levels in the face of decreased milk output present complex but attractive options. Dairy producers must be vigilant and respond promptly to changing circumstances, as historically high margins provide ample space for increased profitability.

  • Dairy margins saw improvement in early August due to higher milk prices and steady feed costs.
  • Block and barrel cheese prices reached their highest since October 2022, mainly due to reduced cheddar cheese production.
  • Cheese production in June 2023 fell 1.4% from the previous year, with cheddar production down 9%.
  • Butterfat levels and butter production are at record highs despite the decline in milk production.
  • USDA’s August WASDE report indicates lower soybean meal prices, potentially reducing feed costs for dairy farmers.
  • The current favorable conditions in milk prices and feed costs offer a chance for higher profitability in the dairy industry.
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Have you observed any recent changes to your milk checks? You could be wondering why your earnings have suddenly improved. Well, it’s not all luck. Dairy margins have increased considerably in the first half of August, owing to rising milk prices and record butterfat levels. This increase boosts profitability and provides a much-needed respite from the constant feed expenses. But what is truly driving this favorable shift? Let’s go into the specifics and examine how these changes affect the dairy industry.

Surging Milk Prices and Steady Feed Costs: A Recipe for Improved Dairy Margins 

The dairy market is navigating a complicated terrain full of difficulties and opportunities. Dairy margins improved significantly in the first half of August, primarily due to rising milk prices. Due to solid cheese market dynamics, dairy producers are better positioned as CME Class III Milk futures rise. Even though feed prices have stayed consistent, this constancy has been critical in increasing profitability. The rise in milk prices and steady feed costs provide a balanced equation that improves total margins, allowing farmers to run their businesses more successfully despite continued problems.

Have You Noticed What’s Happening in the Cheese Market? It’s Been Quite a Ride Lately. 

Have you observed what’s going on in the cheese market? It’s been quite the trip lately. The CME Class III Milk futures have gained dramatically owing to a strong cheese market. Last week, block and barrel prices at the CME reached record highs not seen since October 2022. This increase is primarily due to a decline in cheddar cheese output, which has reduced spot supply and caused prices to rise in recent weeks.

Cheddar output, in particular, has been declining steadily, down 9% since 2023. This is the sixth straight monthly decline. Several variables contribute to this tendency, including high temperatures and persistent herd health difficulties associated with the avian flu pandemic. These factors have produced a perfect storm, drastically reducing cheddar yield.

Consequently, lower output has resulted in tighter spot supply and higher pricing. The drop in cheese output adds another layer of complexity to the market, making it critical for dairy producers to remain knowledgeable and adaptable. Are you ready for these upheavals in the cheese market?

Did You Know? Rising Butterfat Levels Amid Declining Milk Production 

Did you know that, although total milk output has decreased, butterfat levels in milk have increased significantly? This may appear paradoxical at first look, yet it is correct. Butterfat percentages have reached all-time highs, regularly outperforming previous year fat tests since June 2020. What drives this phenomenon?

While overall U.S. milk production is down 0.9% year over year through June, the lowest level in four years, the quality of the milk produced is impressive. Butter output in June increased by 2.8% from the previous year to 169.15 million pounds due to rising butterfat content, demonstrating the industry’s flexibility and resilience.

This increase in butterfat levels has given a silver lining among the difficulties. With butterfat percentages at an all-time high, dairy producers may capitalize on these quality advances while navigating the challenges of decreased milk quantities. This potential maximizes profitability and efficiency in processing, guaranteeing that each drop of milk produces the best possible return. The rise in butterfat levels enhances the quality of dairy products and provides an opportunity for dairy producers to adjust their production strategies to maximize profitability.

Ever Considered How Crop Yields Influence Your Feed Costs?

Let’s take a quick look at feed expenses and crop yields. Have you looked at the USDA’s August WASDE report? It’s quite an eye-opener! They have increased yield and production predictions for maize and soybeans. But what does this imply for us in the dairy farming industry?

For openers, predicted corn-ending stockpiles have decreased marginally. This is mainly owing to fewer harvested acres and increased predicted demand. Less maize will be available, which may keep feed prices flat or raise them somewhat.

Conversely, since July, soybean ending stockpiles have risen dramatically by 135 million bushels. This spike has placed downward pressure on soybean meal costs, giving your feed budget some breathing space. Lowering soybean meal prices may be beneficial since feed is a substantial expenditure for dairy businesses. How will you modify your feeding plan in light of these changes?

The Bottom Line

As previously discussed, higher milk prices and stable feed costs have produced an optimistic scenario for dairy margins. The current recovery in the cheese market and rising butterfat levels in the face of decreased milk output present complicated but attractive options. These options include adjusting production strategies to focus on high-butterfat products, optimizing feed plans to take advantage of changing crop yields, and closely monitoring market dynamics to make informed pricing decisions. Furthermore, shifting crop yields influence feed costs, emphasizing the need for strategic planning.

Dairy producers must be watchful and respond promptly to these changing circumstances. With historically high margins, there is plenty of space to strategize for increased profitability. How will you take advantage of these large profit margins? What techniques will you use to optimize your profits? We encourage you to share your strategies and learn from each other, as the answers to these questions guide your dairy operation’s future success.

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June 2024 Brings Unprecedented Milk Prices: European Dairy Farmers Reap the Benefits

Monday, August 5th, 2024

Find out why European dairy farmers are thrilled about record-high milk prices in June 2024. How will this affect their farm’s earnings? Read more.

Summary: European dairy farmers are seeing record-high milk prices in June 2024, largely due to increased valuations of fat and protein in milk. This price spike provides a boost to the industry, yet variations in milk supply growth across different regions present unique challenges and opportunities. Continuous monitoring of these trends will be vital for understanding their broader impact on the dairy sector.

  • Average milk price in Europe reached 44.73 euros per 100 kg in June 2024, the year’s highest.
  • The increased milk price is primarily due to the higher valuation of fat and protein in the milk.
  • Milk prices have remained stable, fluctuating around 44 euros per 100 kg since January 2024.
  • Milk supply in Europe grew by 0.8% in May 2024, with Poland leading the growth at 4%.
  • Germany also saw an increase in milk supply, while Ireland experienced a smaller decrease.
  • Contrarily, milk production in the Netherlands fell by more than 2% in June 2024, with a 1.4% decrease in the first half of the year compared to 2023.

European dairy farmers are rejoicing as milk prices in June 2024 hit an all-time high with an average price of 44.73 euros per 100 kg of milk, marking the highest price recorded this year. The increase, attributed to higher valuations of fat and protein content, saw a rise of 0.65 cents since the beginning of the year and reflects unparalleled stability in milk prices.

The average milk price saw an increase of 0.65 cents from the previous month. Compared to June 2023, the current price is now 2.34 euros higher, according to the milk price comparison by EDF and DairyNL. This rise in prices is a significant boost for dairy farmers across Europe.

The stability of European milk prices has been notable this year. Dairy enterprises started 2024 with a milk price of 43.64 euros per 100 kg of milk. Since then, prices have hovered around 44 euros per 100 kg. The increase in milk prices is primarily due to the higher appreciation of fat and protein content in the milk. However, French and Spanish dairies have kept their prices stable or have seen slight decreases.

Poland continues to lead in milk supply growth, with a 4% increase in May. German dairy farmers have also increased their milk supply. In contrast, Ireland’s milk supply has been lagging, although the decline has been less severe in recent months. Overall, the total milk supply in Europe increased by 1.1% in the first five months of 2024.

The Netherlands presents a different picture, with a decrease in milk supply accelerating slightly. In June, the country saw a decline of more than 2%. For the first half of the year, the Netherlands produced 1.4% less milk compared to the same period last year.

The record-high milk prices in June 2024 bring a wave of optimism for European dairy farmers. The increase in prices, driven by higher fat and protein valuations, offers a much-needed boost to the industry. However, regional disparities in milk supply growth highlight the varying challenges and opportunities across Europe. As the year progresses, it will be crucial to monitor these trends and their impact on the dairy sector.

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UK Dairy Farmers: Unbelievable August Milk Prices Ahead! Learn How to Capitalize Now

Friday, August 2nd, 2024

Find out how UK dairy farmers can boost profits with the rising August milk prices. Check out market trends and steps to capitalize on this opportunity.

Summary: July 2024 has seen intriguing movements in the global dairy market, shaping UK milk prices and presenting significant challenges and opportunities for farmers. Robust global demand and supply constraints have driven milk prices up, and as we head into August, a continued rise is expected. This necessitates strategic actions from UK dairy farmers to optimize revenue and profitability. Essential insights and investment strategies will be crucial in navigating this volatile market, ensuring resilience and growth. The UK dairy market is grappling with rising feed costs, increased export demand, and a focus on sustainable farming methods, leading to a surge in milk prices. Demand from China and India has prompted price hikes, while post-Brexit trade agreements have facilitated exports, opening new revenue streams. Geopolitical issues like the Russia-Ukraine crisis and climatic difficulties in New Zealand and Australia have also contributed to the surge. In July 2024, reduced grass output, lower milk production per cow, increased feed demand, and post-Brexit regulation changes have led to a notable price increase.

  • Global Demand Surge: Growing milk demand from countries like China and India is pushing prices upward, creating robust export opportunities.
  • Supply Constraints: Reduced grass output and lower milk production per cow in the UK are contributing to supply-side limitations.
  • Geopolitical Factors: The Russia-Ukraine crisis and climatic adversities in New Zealand and Australia are indirectly influencing UK milk prices.
  • Post-Brexit Trade Dynamics: Recent trade agreements have facilitated increased exports, providing new revenue streams for UK dairy farmers.
  • Rising Feed Costs: UK farmers are facing increased feed demand and higher costs, necessitating strategic adjustments to maintain profitability.
  • Sustainability Focus: Sustainable farming practices are increasingly essential, with market trends steering towards environmentally-conscious operations.
  • Regulatory Changes: Adjustments in post-Brexit regulations are impacting operational dynamics and costs for dairy farmers.

Entering August, the UK dairy market is negotiating a complex environment shaped by dynamic factors such as increasing feed costs, increased export demand, and a focus on sustainable farming methods, all driving higher milk prices. Dairy farmers who wish to optimize income and profitability must first understand these trends and demand a strategic plan based on the most recent market data. By developing and implementing a strategic plan, UK dairy producers can monitor current developments to protect their herds from volatility and boost profitability.

FactorsJuly 2024Projected August 2024Impact on Dairy Market
Feed Costs£285/ton£295/tonIncreases production costs, affecting overall profitability
Export DemandHigh (15% increase)Very High (20% increase)Boosts milk prices due to higher demand from international markets
Sustainable Farming InitiativesAdoption Rate: 45%Adoption Rate: 50%Initial costs but long-term savings and higher market value
Milk Prices£0.32/liter£0.34/literIncrease in revenues for farmers

Surging Milk Prices! Uncover the Factors Driving This Unprecedented Boom 

The recent surge in UK milk prices is a testament to the positive strides made by the global dairy industry. The solid demand from across the world, especially from China and India, has led to significant price hikes. The higher affluence and evolving food preferences in these nations have driven this demand, and the UK dairy industry is playing a pivotal role in meeting it.

Improving export prospects is also essential. Premium dairy products from the United Kingdom are in great demand worldwide, notably in the European Union and Southeast Asia. Post-Brexit trade agreements have allowed more accessible exports, opening up new cash sources for UK farmers.

Geopolitical issues have supplied extra impetus. The crisis between Russia and Ukraine has changed supply chains, raising demand for dairy goods throughout Europe, including the United Kingdom. Furthermore, climatic difficulties in New Zealand and Australia have temporarily limited production, which benefits UK markets. Rising worldwide demand, improved export routes, and geopolitical shifts have increased milk prices for UK producers. This offers a promising foundation for future development and profitability.

A Perfect Storm: How July’s Market Trends Signal Unprecedented Challenges and Opportunities for UK Dairy Farmers 

In July 2024, the milk market saw a price increase, bringing obstacles and possibilities for UK dairy producers. The hot, dry summer has decreased grass output and milk production per cow. This has increased the demand for additional feed, which has become more costly due to global grain market concerns and rising shipping costs.

Post-Brexit regulation changes and customs inspections have raised the cost of imported feed, veterinary supplies, and equipment. Additionally, labor shortages are raising salaries and increasing operating costs.

Despite these challenges, practical actions may assist in controlling income. Efficient feed and water utilization, new farming practices to increase milk output, and diversification of supply sources are critical for success in the present market.

Brace for Impact: August 2024’s Milk Price Surge Demands Strategic Action from UK Dairy Farmers 

Milk prices are predicted to climb even more in August 2024, owing to increased worldwide demand and restricting local supply. We expect a 4-5% average rise, driven by a projected worldwide dairy market growth rate of 3.2%, a significant increase from the prior projection of 1.15%. Emerging markets in Southeast Asia and Africa want more dairy, which contributes considerably to the rise. Climate uncertainty and geopolitical concerns impacting feed costs may drive prices upward.

Environmental reasons and regulatory developments in crucial dairy exporting nations have resulted in a turbulent but potentially lucrative environment for UK dairy producers. Understanding these forecasts is critical for developing ways to maintain financial stability. Farmers should assess their production capacity and consider expanding or investing in sustainable techniques to profit from increased pricing. Embracing technology to improve efficiency and examining supply chain efficiencies will be critical to revenue growth.

Here are Key Actionable Insights: 

As UK dairy producers confront rising milk prices, managing the market effectively is critical for maximizing profitability. Here are crucial actionable insights: 

  • Optimized Herd Management: Effective herd management is critical. Cow health must be carefully monitored to ensure regular veterinarian checkups and preventative treatment. Advanced breeding procedures may improve milk production and quality. Consider investing in genetic breakthroughs that have shown improved lactation performance.
  • Feed Optimization: Rethink your feeding strategy. The quality and content of feed have a direct influence on milk output. Choose nutrient-dense feed that balances carbs, proteins, and necessary minerals. Precision feeding technology may help optimize this process, ensuring that each cow obtains the optimal nutritional intake while minimizing waste.
  • Cost Control: Examine your operating costs thoroughly; use technology for more effective farm management to save expenses. Automated milking, feed delivery, and monitoring systems may save labor expenses while increasing uniformity. Keeping an eye on market trends helps make intelligent purchase choices, including getting bulk feed or supplies at attractive pricing.
  • Market Intelligence: Stay current with market trends and predictions. Aligning milk production plans with peak pricing times may help increase profitability. Diversifying milk products—from fluid milk to cheese, butter, or yogurt—could result in additional income streams, particularly in specialist markets like organic or A2.

In summary, profiting from increasing milk prices requires combining conventional knowledge and cutting-edge technology. UK dairy producers may survive and prosper in a changing market scenario by concentrating on optimal herd management, accurate feed methods, and strict cost controls.

Investment Strategies UK Dairy Farmers Can’t Afford to Ignore

As we navigate these difficult yet exciting times, UK dairy producers must consider numerous investment alternatives to increase profitability. One potential route is technological advancement. Implementing modern milking equipment and data-driven herd management tools may improve efficiency and output, increasing income. Furthermore, this technology may assist in monitoring animal health more accurately, lowering veterinarian expenditures and increasing production.

Another critical investment is diversification into value-added goods. Profit margins may be increased by processing milk into cheese, yogurt, or other specialist dairy products. These products often command premium pricing in domestic and international markets, acting as a buffer against the volatility of raw milk prices.

Finally, discovering new markets may lead to extra income sources. With favorable developments in the global dairy sector, expanding into export markets or specialist areas such as organic or free-range goods provides significant growth potential. Expanding market reach stabilizes revenue and prepares farmers to capitalize on rising consumer demand in several places.

Mastering Dairy Market Volatility: Essential Risk Management Strategies for UK Farmers 

Risk management is critical for success in the unpredictable dairy sector. UK dairy producers experience price swings and market instability, making a robust risk management strategy essential for long-term profitability and survival. Without it, your farm’s financial health could be at serious risk.  

  • First and foremost, it is critical to hedge against price volatility. Forward contracts may lock in milk and other dairy product prices, shielding you from unexpected market reductions. These contracts are helpful, particularly when short-term volatility is anticipated.
  • Options trading provides an additional degree of protection. Purchasing put options enables you to sell milk at a fixed price, which cushions against price declines. Call options allow you to profit from price rises, guaranteeing that you maximize income under favorable market circumstances.
  • Diversifying your revenue sources is also beneficial. Adding value-added products to your portfolio, such as cheese, yogurt, or butter, may provide additional income streams while mitigating the effects of shifting milk costs. Investigate specialized markets such as organic or specialty dairy products, which often command higher, more consistent pricing.
  • Liquidity management is another critical component. A sufficient cash reserve gives a buffer during difficult times when milk prices fall or input expenses suddenly surge. This buffer helps to ensure operational stability.
  • Finally, precision agricultural technology may provide data-driven insights to improve decision-making. Real-time market data, predictive modeling, and automated milking systems may help maximize production efficiency and profitability. Use data to quickly adjust to market changes and keep your operations agile and responsive.

Addressing price volatility requires a diversified risk management strategy. Financial instruments, diversification, liquidity management, new technology, and insurance solutions may help you safeguard your farm from possible dangers while capitalizing on growing possibilities in the dynamic dairy market.

The Bottom Line

We have looked deeply into the factors causing the recent increase in milk prices, revealing how several July 2024 market trends create unique difficulties and exciting prospects for UK dairy producers. With August estimates predicting further growth, it is clear that intelligent investment and proactive risk management are critical. Farmers must remain aware, watch market movements, and modify their strategies to capitalize on these advantageous circumstances. Dairy farmers may increase their income and profitability by harnessing professional insights and taking advised steps in this volatile market. Immediate action, such as reevaluating investment plans or improving risk management techniques, can guarantee that farmers survive and prosper in the face of continuous changes. The time to act is now—stay ahead of the curve, capitalize on trends, and ensure your farm’s future success.

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Maximizing Dairy-Beef Potential: Grazing Strategies Boost Weight and Efficiency

Wednesday, July 17th, 2024

Learn how grazing strategies can improve weight and efficiency in dair y-beef crossbred cattle. Can these techniques help you enhance your herd’s performance? Read to find out.

Picture combining beef cattle’s strong efficiency with dairy cows’ milk-producing ability. Welcome to the universe of crossbred dairy-beef animals. These hybrids are a calculated junction of dairy and beef production. For dairy producers, they provide a convincing approach to increase value. Their different requirements, meanwhile, greatly vary from those of local beef cattle. Realizing the unique requirements of dairy-beef crossbreds depends on knowing them. Explore our study results, valuable recommendations, and expert opinions to guide you toward wise choices. Ready to learn how grazing affects the profitability and development of your dairy-beef crossbreds? Please discover out by reading on.

Discover the Unique Challenges and Opportunities of Dairy-Beef Crossbreds By combining the genetic traits of dairy and beef breeds, dairy-beef crossbred animals present unique demands. Selected for their milk production, dairy breeds such as Holsteins produce animals with a different muscle distribution and body type compared to beef varieties like Angus. This necessitates specific monitoring and dietary treatment, making them a fascinating subject of study.

Usually grown on dairy farms in controlled conditions, these calves require assistance adjusting to group life and outdoor grazing when transferred to a feedlot or pasture. Making sure these crossbreds realize their potential means matching them with meat systems. Dairy and cattle farmers will gain from tailored feeding regimens and slow changes to new surroundings.

Unlocking Postweaned Potential: Insights from Ally Grote’s Dairy-Beef Research

Important new information on the unique requirements of post-weaned dairy-beef animals was presented during an engaging Oklahoma State University Extension beef-on-dairy webinar. Graduate student Ally Grote presented her essential study, filling a need mostly related to younger calves. Her research provides new ideas and practical techniques to improve their performance in cattle production systems.

Striking a Balance: Grazing Versus Immediate Feedlot EntryThe first study tracked dairy-beef steers grazing five to six months before going into a feedlot vs those arriving right after. Since these calves frequently come smaller than local beef cattle, grazing before the feedlot saves feed and labor. This intermediate grazing season lowers feedlot resource requirements.

Grading, however, takes time. Eighty days older at the feedlot entrance, the cattle grazed were Still; they spent 144 fewer days in the feedlot and weighed 70 pounds more at slaughter. Their average daily growth (ADG) was 4.2 pounds, but for the straight-to-feedlot group, it was 3.4.

Therefore, even if grazing increases the beginning timeline, it generates more considerable, more robust animals and lowers the intense feedlot care time, optimizing labor and expenses.

Grote’s initial experiment provided apparent answers. Although the animals were 80 days older at slaughter, grazing before feedlot arrival shortened feedlot duration by 144 days. Amazingly, upon shipment, grazed animals weighed seventy pounds more.

The grazed group outperformed, with an average daily growth (ADG) of 4.2 pounds instead of 3.4 pounds for pure feedlot animals. Compared to the feedlot group’s 3.4 pounds, grass animals gained 4.1 pounds daily overall.

Post-slaughter grazed animals had a somewhat greater rib-eye area (14.2 square inches vs. 13.9 inches) and a hotter carcass weight (896 pounds vs. 865 pounds). For dairy beef, meat grading revealed greater consistency in the Choice category; straight feedlot steers more commonly fell into the Select and Prime categories.

Setting the Stage for Grazing Success: preparing Dairy-Beef Crossbreds for the Journey AheadMoving pasture might challenge dairy-beef cows. Their lack of familiarity with pastures, outside circumstances, or group living may cause stress and delayed development.

Acclimatization is a vital phase. They gradually get comfortable being exposed to water troughs and fences. Furthermore, it is essential to select the appropriate forages for their habitat and dietary requirements. This guarantees their health and development, as well as the required nutrients.

Emphasizing these phases will enable them to flourish in fresh grazing grounds. Maximizing their potential in cattle production systems depends on an awareness of and solution for these obstacles.

Compensatory Gain: Debunking Myths with Dairy-Beef Performance 

The second research looked at the compensatory weight growth of dairy-beef animals on a pasture. Researchers watched as 75 native beef and 75 dairy-beef animals moved from grass to a growth supplement in the feedlot.

The results were astonishing. Dairy-beef cattle began lighter, but they caught up fast. Dairy-beef animals grew about 5 pounds daily for 87 days, compared to 4 pounds for native beef, thereby attaining a 115% compensatory gain—much more than the 60% to 80% predicted for local meat.

Dairy-beef cattle, beginning smaller, quickly closed the weight difference. Their near 5-pound daily increase exceeded the usual native beef compensatory gain range. Furthermore, the groups showed no appreciable variations in health, therefore highlighting the vital condition of dairy-beef calves.

The Bottom Line

According to studies by Ally Grote, dairy-beef crossbreds may integrate well into beef production systems and meet competitive performance criteria. Better weight increase and consistent meat quality follow from reduced labor and cost savings gained by grazing before feedlot entrance. The second research shows that dairy beef animals may almost equal or exceed native beef cattle in growth, disproving the notion that they cannot acquire compensatory weight. Dairy-beef animals may be lucrative and flourish under the correct conditions for beef farmers.

Key Takeaways:

  • Dairy-beef animals can graze before feedlot finishing, saving on feed costs and labor.
  • Grazed dairy-beef animals spend less time on feed in the feedlot and achieve higher average daily gains compared to those that go straight to the feedlot.
  • At slaughter, grazed animals had higher hot carcass weights and larger rib-eye areas.
  • Dairy-beef meat is more consistent and often grades in the middle Choice category, with fewer extremes in the grading spectrum.
  • Acclimating dairy-beef animals to pasture and selecting appropriate forages is crucial for successful grazing.
  • Contrary to belief, dairy-beef animals can achieve significant compensatory gain after being on pasture, often exceeding the performance of native beef.
  • No differences in morbidity or mortality rates were observed between dairy-beef and native beef animals in the feedlot.

Summary:

Dairy-beef crossbreds, combining genetic traits of dairy and beef breeds, present unique challenges and opportunities for dairy producers. Graduate student Ally Grote’s research suggests grazing before feedlot entry can save feed and labor, and prepare cows for the journey ahead. Dairy-beef cattle can achieve a compensatory gain of 115%, outperforming native beef cattle in growth. This research suggests that dairy-beef crossbreds may be lucrative and flourish under the right conditions for beef farmers.


Download “The Ultimate Dairy Breeders Guide to Beef on Dairy Integration” Now!

Are you eager to discover the benefits of integrating beef genetics into your dairy herd? “The Ultimate Dairy Breeders Guide to Beef on Dairy Integration” is your key to enhancing productivity and profitability.  This guide is explicitly designed for progressive dairy breeders, from choosing the best beef breeds for dairy integration to advanced genetic selection tips. Get practical management practices to elevate your breeding program.  Understand the use of proven beef sires, from selection to offspring performance. Gain actionable insights through expert advice and real-world case studies. Learn about marketing, financial planning, and market assessment to maximize profitability.  Dive into the world of beef-on-dairy integration. Leverage the latest genetic tools and technologies to enhance your livestock quality. By the end of this guide, you’ll make informed decisions, boost farm efficiency, and effectively diversify your business.  Embark on this journey with us and unlock the full potential of your dairy herd with beef-on-dairy integration. Get Started!

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Growth in Class III Milk Futures Amid Mixed Market Movements: CME Dairy Report – June 24, 2024

Monday, June 24th, 2024

Find out the latest trends in Class III milk futures and market movements from the Chicago Mercantile Exchange. How will these changes affect your dairy farming plans?

Today, we observed relatively subdued activity across Class III and IV markets. Class III prices saw a general increase of 10-15 cents, influenced by a mix of spot results. Notably, only one Class IV contract has been traded, with butter and nonfat prices showing a decline. This slow start to the week is particularly noteworthy, given the high anticipation surrounding the recent Milk Production report, which is expected to have a significant impact on the market.

Mixed Movements in Milk Futures: Class III Climbs While Class IV Drags

ContractClass III Price ($/cwt)Class IV Price ($/cwt)
July 2024$19.87$21.21
August 2024$20.00$21.15
September 2024$20.10$21.10

The overall market movements for Class III and Class IV milk futures presented a mixed picture. Class III futures showed a moderate growth, increasing by 10-15 cents, which can be seen as a positive response to spot market variations. On the other hand, Class IV futures saw limited activity with predominantly downward trends, including a single contract traded and declines in butter and nonfat milk prices. This mix of movements sets the stage for a cautious start to the week, highlighting the potential risks and opportunities in the market following the recent Milk Production report.

Optimism in Class III Milk Futures Amid Mixed Spot Market Results 

Class III milk futures showed signs of optimism as prices rose by 10-15 cents across all contracts. This uptick was primarily a reflection of mixed spot market results. Specifically, block cheese prices increased to $1.8900 per pound, likely bolstering confidence among traders. In contrast, barrel cheese prices slightly declined to $1.9150 per pound. The divergence in spot prices seemed to fuel the cautious yet hopeful sentiment observed in the futures market.

Class IV Milk Futures See Limited Activity Amid Sluggish Market

Class IV milk futures were subdued, reflecting the overall sluggish activity in the market today. At the time of writing, only one Class IV contract had been traded, highlighting the lackluster interest in this segment. This cautious trading behavior was mirrored by declines in both butter and nonfat dry milk prices. Butter settled at $3.0650 per pound, giving up $0.0250, and nonfat dry milk followed suit with similar downward adjustments. The dipping prices in essential dairy commodities likely contributed to the softer stance in Class IV futures.

Spot Market Sees Mixed Cheese Prices and Declines in Butter and Nonfat Dry Milk

ProductPrice Per PoundChange
Cheese Blocks$1.8900+ $0.0450
Cheese Barrels$1.9150– $0.0050
Butter$3.0650– $0.0250
Nonfat Dry Milk$1.19– $0.0025

The day’s spot market activity saw block cheese prices lift to $1.8900 per pound, marking an increase of $0.0450 per pound with two lots traded. In contrast, barrel cheese prices slipped slightly to $1.9150 per pound, a decrease of $0.0050, with just one load exchanged. 

Butter prices also dipped today, settling at $3.0650 per pound, down by $0.0250 per pound with one lot sold. Meanwhile, nonfat dry milk prices decreased by $0.0025 to $1.19, with three sales recorded, ranging from $1.19 to $1.1950 per pound. 

This pattern of dipping prices across essential dairy commodities indicates a market cautious at the start of the week, especially following the highly anticipated Milk Production report.

Mixed Futures Activity: Class III Shows Gains, While Class IV and Butter Futures Retreat

In today’s market, July Class III futures rose by 12 cents to $19.87 per hundredweight, indicating positive movement despite mixed spot results. This rise contrasts with the nearby Class IV contract, which saw a decrease, losing 12 cents and settling at $21.21 per hundredweight. 

Trends in Q3 “all-cheese” futures were upbeat, ending the day positively at $2.0333 per pound, adding $0.0220. However, the butter futures market mirrored the spot market softness, with July futures coming in at $3.0550 per pound, down $0.0300.

Promising Crop Conditions: Corn and Soybeans Show Strong Potential

CropDate% Planted% Good to Excellent
CornJune 23, 202498%69%
SoybeansJune 23, 202497%67%

The latest Crop Progress report sheds light on the current status of crucial feed crops, such as corn and soybeans, which are vital to the dairy industry. As of June 23, 69% of the corn crop was rated good to excellent. This indicates a robust potential for feed quality, directly impacting feed costs and milk production efficiency. Similarly, soybean planting has nearly completed, with 97% of the crop in the ground and 67% rated good to excellent. This positive outlook in crop conditions could lead to stable or reduced feed prices, offering a silver lining for dairy farmers navigating volatile market conditions.

The Bottom Line

The CME dairy report for June 24, 2024, highlights modest growth in Class III futures, with prices rising 10-15 cents. However, Class IV futures were primarily static, with minimal trading activity. Key spot prices for blocks and barrels showed mixed results, indicating a potentially stabilizing market. Additionally, butter futures softened slightly. 

For dairy farmers, these market movements suggest a cautiously optimistic outlook. The increase in Class III futures might signal improving dairy margins, especially as feed costs are expected to stabilize with promising crop progress reports. Keeping a close eye on market trends through resources like the CME and Progressive Dairy will be crucial for making informed decisions. Utilizing tools like Dairy Revenue Protection could offer additional security against volatile price swings, ensuring your operations remain resilient in the coming weeks.

Key Takeaways:

  • Class III milk futures showed modest growth, rising 10-15 cents.
  • Class IV milk futures experienced minimal trading activity and a decline in prices.
  • Block cheese prices increased, while barrel cheese prices fell slightly.
  • Butter prices and futures saw a decrease, with minimal trading activity.
  • Corn crop progress remains strong, with 69% rated good to excellent.
  • Soybean planting is nearly complete, with a 67% good to excellent rating.
  • Dairy margins are projected to improve for the rest of the year due to stronger milk prices and lower feed costs.

Summary: 

The dairy market has seen a mixed start to the week, with Class III and IV milk futures showing moderate growth and a cautious outlook. Class III prices increased by 10-15 cents overall, driven by mixed spot results. However, Class IV futures saw limited activity with predominantly downward trends, including a single contract traded and declines in butter and nonfat milk prices. This mix of movements sets the stage for a cautious start to the week, highlighting potential risks and opportunities in the market following the recent Milk Production report. Block cheese prices increased to $1.8900 per pound, while barrel cheese prices slightly declined to $1.9150 per pound. July Class III futures rose by 12 cents to $19.87 per hundredweight, indicating positive movement despite mixed spot results. Q3 “all-cheese” futures ended the day positively at $2.0333 per pound.

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