Dairy Report

Dairy- US milk production during June is estimated to have been 2.4% larger than a year ago due to a 3.7% increase in milk per cow yields and a 1.2% smaller milk cow herd.  Dairy farmers did add a net eleven thousand head to the herd during June contributing to the forty thousand head increase for 2010 thus far.  The June milk production increase over 2009 was the largest for any month in two years.  Warm temperatures are intensifying the current seasonal downturn in milk output.  Still, the upside risk in the cheese and butter markets from here may only be modest. 

 

Market Trend

Supplies

Price vs. Last Year

Cheese Barrels- CME

Increasing

Good

Higher

Cheese 40 lb Blocks- CME

Increasing

Good

Higher

American Cheese

Increasing

Good

Higher

Cheddar Cheese

Steady

Good

Higher

Mozzarella Cheese

Increasing

Good

Higher

Provolone Cheese

Increasing

Good

Higher

Parmesan Cheese

Increasing

Good

Higher

Butter- One lb Solids

Increasing

Good

Higher

Nonfat Dry Milk

Decreasing

Good

Higher

Whey, Dry

Decreasing

Good

Higher

Class I Milk Base

Steady

Good

Higher

Class II Cream (Heavy Cream)

Increasing

Good

Higher

Class III Milk- CME

Increasing

Good

Higher

Class IV Milk- CME

Increasing

Good

Higher