June Dairy Market Report

Lizzy SchultzAg Group, Dairy, Dairy Business, Dairy Checkoff, dairy farming, Dairy Management Inc., Markets, Milk, National Milk

dairy market report This month’s Dairy Market Report from Dairy Management Inc. and the National Milk Producers Federation (NMPF) shows that U.S. milk production was 1.2 percent higher in April than a year earlier.This interrupts the pattern of the three previous months, which had suggested the nation’s milk supply was experiencing a rapid growth spurt.

Domestic commercial use of milk solids grew faster than milk solids production during the first quarter of 2016, which is a positive development for the producer price outlook. April also saw an improvement in the dairy trade balance improved in April, compared to the previous several months.

Milk production rose 1.3 percent during February – April over the same three months in 2015, and April production was 1.2 percent higher than a year earlier, but down from the 1.8 percent year-over-year increase for March. The national-level production gain was due almost entirely to increased production per cow.

While record inventories depressed cheese prices in April, large butter stocks did not prevent a continued rise in butter prices, keeping the average all milk price at 30 cents per hundredweight lower in April compared to March, while the monthly Margin Protection Program feed cost calculation rose by 64 cents per hundredweight.

These changes put the bimonthly MPP margin for March-April at $7.15 per hundredweight, which triggered payments for producers insured to at least $7.50.

View the whole report here.