Market Reports

Despite the rough week in the dairy pits, dairy product prices and Class III values in particular will soon find their footing.

The spot markets have been buoyed by robust near-term fundamentals. However, dairy futures were far from exuberant this week and some new clouds have moved onto the horizon.

The stock market suffered its worst losses of the year on Monday but the U.S. dairy markets remain firmly supported as milk tightens. On Monday, USDA will publish its much-anticipated Acreage and Crop Production reports. Next week could be volatile.

Although the bulls did not assert themselves this week, the bears are not in charge. Aside from the break from the extreme heat, all the factors that propelled the markets to their recent peak remain in play.

Dairy producers would surely prefer the energy of the early-stage rally to today’s more plodding progress. The plateau is a sign of healthy markets at work.

Almost all products rallied at the Global Dairy Trade (GDT) auction on Tuesday. However, in Europe dairy product prices continue to slip. Heat is also taking a noticeable toll on milk yields and components in much of the United States.