Milk futures have been declining, but there is one bright spot in the dairy complex and that is whey. Despite higher cheese production good domestic and international demand has added substantially to milk prices.
Fat cattle prices have grown $7 per CWT the last couple of weeks and offers a better cull cow market moving forward.
The volatility in the milk markets continued on Thursday.
Year-to-date culling on pace with last year.
Borrowing from the strength in the GDT, U.S. markets have risen.
Event 184 of the Global Dairy Trade auction took place on Tuesday and ended with the price index up 1.7%.
EU producers become more efficient as herd size shrinks
Much softness was shown in the Class III milk market to kick off the week on Monday.
Increasing production around the world could limit how high the milk price can go.
The good news: U.S. dairy commodities are all pretty much in a favorable, competitive position for export sales.