US Milk Prices Surge, with Class III Reaching 18-Month High
Source: The DairyNews
The US Federal order for June has set the Class III benchmark milk price at $19.87 per hundredweight, marking a significant $1.32 increase from May. This price not only surpasses last June's figures by $4.96 but also represents the highest Class III price since December 2022.
The six-month average for Class III prices currently stands at $16.92, slightly down from $17.48 at this time last year, contrasting with the $22.95 average in 2022.
Futures trading on Monday indicated a continued upward trend, with projected Class III prices for the coming months ranging from $19.80 in July to a peak of $20.73 in September, before a slight decrease towards the year's end.
In contrast, the Class IV price has risen to $21.08, up 58 cents since May and $2.82 higher than last year, marking the highest point since October 2023. The six-month average for Class IV stands at $20.17, showing a significant rise from $18.59 a year ago.
Despite a slight decrease in overall milk production by 0.9% from last year, cheese and butter outputs have remained robust. Cheese production in May increased by 2.1% to 1.213 billion pounds, with a notable rise in Mozzarella production, driven by high demand from home delivery services. Butter production also saw a year-on-year increase, totaling 204.3 million pounds.
However, dry whey and nonfat dry milk production have experienced declines, with respective year-to-date outputs falling by 7.6% and 14.9%. Despite these dips, the dairy sector is witnessing strong price performances in cheese and butter markets, with Cheddar blocks trading at $1.90 per pound and barrels at $1.9025, showing significant year-over-year gains.
Futures trading on Monday indicated a continued upward trend, with projected Class III prices for the coming months ranging from $19.80 in July to a peak of $20.73 in September, before a slight decrease towards the year's end.
In contrast, the Class IV price has risen to $21.08, up 58 cents since May and $2.82 higher than last year, marking the highest point since October 2023. The six-month average for Class IV stands at $20.17, showing a significant rise from $18.59 a year ago.
Despite a slight decrease in overall milk production by 0.9% from last year, cheese and butter outputs have remained robust. Cheese production in May increased by 2.1% to 1.213 billion pounds, with a notable rise in Mozzarella production, driven by high demand from home delivery services. Butter production also saw a year-on-year increase, totaling 204.3 million pounds.
However, dry whey and nonfat dry milk production have experienced declines, with respective year-to-date outputs falling by 7.6% and 14.9%. Despite these dips, the dairy sector is witnessing strong price performances in cheese and butter markets, with Cheddar blocks trading at $1.90 per pound and barrels at $1.9025, showing significant year-over-year gains.
