Argentina: Robust milk production threatens price recovery

Published 2021년 5월 31일

Tridge summary

Milk prices have been on a steady rise since their low in February, with the Class III price expected to reach around $18.90 in May. This increase is due to higher cheese and dry whey prices. However, a recent sharp decrease in cheese prices is predicted to result in a weaker Class III price in June. The future of milk prices remains uncertain, influenced by factors such as domestic sales, exports, and milk production. The article also mentions that milk production needs to decrease to support milk prices, and that current Class III futures are optimistic, with prices expected to be in the low $19s from July through October.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Since their low in February, milk prices continue to climb higher. The February Class III price was $15.75 and increased to $17.67 in April, with May predicted to be around $18.90. “The stronger Class III price is the result of cheese prices strengthening the end of April into May and higher dry whey prices at 64 cents per pound,” says Bob Cropp, University of Wisconsin-Madison Extension dairy economist. “A year ago, dry whey was 39 cents per pound. The higher dry whey price has added about $1.45 to the Class III price.” The stronger Class IV price is the result of higher average butter and nonfat dry milk prices, Cropp says. While butter and nonfat dry milk prices are holding, cheese prices have taken a sharp downturn, which means a weaker Class III price in June. On the CME, the 40-pound cheddar block cheese price has fallen 23 cents per pound, from $1.81 in mid-May to $1.58. Cheddar barrels have fallen 15 cents per pound, from $1.78 in mid-May to $1.62 on May 26. “The higher ...

Source: eDairyNews