Abundant Feed Supplies Benefit Dairy Producers
On Tuesday, USDA released their April World Agriculture Supply and Demand estimates.
By their tally, we now enter the third year of record grain supplies. Much of this increase comes from a rising tide of South American production, where following last year’s Brazilian drought and Argentinian flood, prices rose to encourage greater planting and consequently more production.
The assurance of ongoing abundant global feed supplies is good news for dairy producers who have enough to worry about amid recent developments in the market and ongoing news stories.
The good news does not stop there. In the Class III markets on Tuesday, prices rose to an average of $16.32 per CWT in the second half of the year. A 6₵ gain as prices responded to the positive trade in butter and powder and the neutral trade in cheese.
In the CME spot session, block cheese was unchanged at $1.46 per pound. No trades took place. Barrel cheese saw 10 loads trade hands, all at unchanged, with a final price of $1.4275 per pound. Powder rose to 82.5₵ as a plethora of bids moved into the market to raise it 1.5₵ from Monday’s trade. Butter markets were also higher finishing at $2.09 per pound, up a 1.25₵.