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The USDA's August supply and demand report cut its milk production forecasts for 2019 and 2020 on a smaller herd and slower milk per cow gains. It raised 2019 cheese, butter and whey prices, lowered nonfat dry milk prices on slowing demand, and trimmed the 2019 all-milk price up to $18.30 and 2020 to $18.80.
A smaller milk supply and firmer cheese and butter prices support dairy product values, while weaker nonfat dry milk demand and export competition pressure skim-solids prices. Feed buyers should expect firmer dairy-based feed inputs in some categories but soft skim-solid demand.
brownfieldagnews.comNicole HeslipAug 12, 2019After 237 past bullish report events, Milk (Class III) moved a median +0.0% over 5 sessions (51% higher; middle half -0.3% to +0.6%), and +1.2% over 20.
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.
