There is a significant dynamic taking place in the market with cheese prices at the lowest level they have been since April. The butter price has been in a sideways pattern since early October after the price fell from the high in late August. However, the nonfat dry milk and dry whey prices have moved in the opposite direction. The Grade A nonfat dry milk price moved to the highest level since November 22, 2022, while the dry whey price reached the highest level since April 22, 2022. The strength of the powder prices has done much to limit the decline of Class III and Class IV prices due to the weakness of butter and cheese prices. Milk production has not rebounded so far this fall as anticipated, but demand has also not rebounded as much as anticipated leaving the butter and cheese markets struggling. As prices declined, buyers were purchasing for contracted orders and expected demand. This has put them in a position of having sufficient supply on hand with buying taking place on an as-needed basis.
Robin Schmahl
December 11, 2024 10:36 AM
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