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Washington Dairygrams for August 2022 reports that the weakening economy and inflation had begun to weigh on dairy demand, with forward Class III and Class IV futures averages falling from June to August. Class III milk dropped $1.80 to $22.52 per hundredweight in July, and COVID-19 lockdowns in China cut demand for milk powder, pushing spot nonfat dry milk to a 10-month low.
The newsletter also flagged port backups at Savannah and labor unrest on the West Coast ahead of peak shipping season.
Softer dairy prices and weaker Chinese powder demand reduce returns for dairy producers and can lower the value of dairy-based feed ingredients. Shipping delays add cost and timing risk for feed importers and exporters.
hoards.comCorey GeigerAug 10, 2022Not 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.
