U.S. Dairy Market Sees Mixed Trends in April Milk Prices Amid Protein Value Drop
Source: The DairyNews
In the U.S., the dairy sector experienced a diverse set of outcomes in April's milk pricing under the Federal Milk Marketing Order (FMMO).
With the release of FMMO pooling estimates, uniform prices, and producer price differentials (PPDs) scheduled for May 11-14, dairy producers are bracing for potential impacts on their April earnings. This comes after witnessing a significant decrease in protein values, hitting a low not seen in nearly 25 years.
According to the latest data announced on May 1, the prices for Class II, III, and IV milk displayed varying trends. Notably, the price for Class III milk decreased, reaching a three-month low at $15.50 per hundredweight (cwt), which was $3.02 less than the same period last year. This decline was contrasted by modest increases in the prices for Class I, II, and IV milk. The Class II price reached a new high since October 2023 at $21.23 per cwt.
Moreover, the disparity between Class III and Class IV prices expanded to $4.61, the widest since October 2023, potentially influencing FMMO pooling strategies. Dairy producers should anticipate the detailed summary of April's FMMO results on May 15, available on Progressive Dairy's website.
In terms of milk components, the value of butterfat increased slightly from March, whereas protein values plummeted to a historic low, reflecting ongoing volatility in the market. This shift in component values will likely influence overall milk payments and financial strategies in the dairy industry moving forward.
According to the latest data announced on May 1, the prices for Class II, III, and IV milk displayed varying trends. Notably, the price for Class III milk decreased, reaching a three-month low at $15.50 per hundredweight (cwt), which was $3.02 less than the same period last year. This decline was contrasted by modest increases in the prices for Class I, II, and IV milk. The Class II price reached a new high since October 2023 at $21.23 per cwt.
Moreover, the disparity between Class III and Class IV prices expanded to $4.61, the widest since October 2023, potentially influencing FMMO pooling strategies. Dairy producers should anticipate the detailed summary of April's FMMO results on May 15, available on Progressive Dairy's website.
In terms of milk components, the value of butterfat increased slightly from March, whereas protein values plummeted to a historic low, reflecting ongoing volatility in the market. This shift in component values will likely influence overall milk payments and financial strategies in the dairy industry moving forward.
