June 20, 2017

Dairy Has More of Everything

 |  By: Know Your Market

A quick way to sum up the May milk production report would be simply accomplished by saying the word “more”.

We have more cows, 2,000 more than last month and 71,000 more than last year at this time. Cow numbers still stand at a 21-year high.

We have more milk. Production rose on a per cow basis, and in the end total production rose 1.8%.

Also newsworthy was event 190 of the Global Dairy Trade. The index finished 0.8% lower. That’s the first lower finish since March 7. As always, whole milk powder led the charge, dropping 3.3% to an average price of $1.37 per pound.

Skim milk powder headed in the opposite direction rising 1.4% to $1.01 per pound. Cheddar, after being the high flier in the last auction, dropped 3.8% to finish at an average price of $1.87 per pound.

Butter was up 2.9%, finishing at an average price of $2.56 per pound.

Tuesday’s CME spot trade had butter up 7 cents to a final price of $2.63. The block, barrel spread widened to 26 cents as blocks remained unchanged and barrels dropped 1 ¼ cent to $1.33 ¾. Grade A nonfat dry milk was off 1 ½ penny to 89 cents.

Class III markets were down 13 cents on average through the end of the year while Class IV markets were up 3 cents.