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U.S. milk production is running 3.3% above a year earlier, and milk prices have recovered since their February low. Class III futures are trading in the low $19 range from July through October.
Cheese block prices have fallen sharply from mid-May levels.
Rising milk output is likely to cap the recovery in Class III prices, especially as cheese softens. Lower dairy prices would reduce farm margins and could eventually slow herd growth and feed demand.
farmprogress.comFran O'LearyMay 27, 2021Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Reports of US milk output 3.3% above a year earlier and sharp declines in cheese block prices from mid-May point to a supply glut and weak cheese pricing, pressuring Class III futures.
