Dairy Report

Dairy- The milk- feed price ratio in June was stable with May’s record low level suggesting the dairy farmer margins remained historically poor.  Ongoing meager profitability is expected to cause milk production to trend well below 2008 levels this summer.  The USDA is forecasting 3rd quarter 2009 milk output to be 2.4% less than the previous year.  The CME cheese markets appear to be bottoming and modest cheese market increases are anticipated in the coming months.  Relatively engaging butter prices could persist during July due to lethargic export demand. 

 

Market Trend

Supplies

Price vs. Last Year

Cheese Barrels- CME

Increasing

Good

Lower

Cheese 40 lb Blocks- CME

Decreasing

Good

Lower

American Cheese

Steady

Good

Lower

Cheddar Cheese

Steady

Good

Lower

Mozzarella Cheese

Steady

Good

Lower

Provolone Cheese

Steady

Good

Lower

Parmesan Cheese

Steady

Good

Lower

Butter- One lb Solids

Decreasing

Good

Lower

Nonfat Dry Milk

Increasing

Good

Lower

Whey, Dry

Increasing

Good

Higher

Class I Milk Base

 Steady

Good

Lower

Class II Cream (Heavy Cream)

 Steady

Good

Lower

Class III Milk- CME

Increasing

Good

Lower

Class IV Milk- CME

Steady

Good

Lower