DAIRY TRENDS

Farmer's Report

Dairy Trends - December 2, 2022

All dairy pricing trends are based on USDA and CME data as of November 30, 2022.

BUTTER

Butter pricing remains firm, which has led to further end-user demand ahead of the Christmas season, according to analysts. Butter churns have shown solid improvement, with better nearby milk output and much cheaper cream coming to the market. The USDA reported that October Cold Storage inventories continued their seasonal declines, registering -14% year-over-year, but the pace of the decline has slowed when compared to the -18% year-over-year numbers reported in previous months. This slower draw-down points to demand rationing at these elevated prices, as well as seasonally increasing butter production across the country, according to analysts.

CHEESE

The CME block markets fell this week, while barrel markets are relatively flat after falling significantly during the two weeks before Thanksgiving.

SHELL EGGS

Urner Barry reported that egg prices again rose to new all-time highs this week. Demand is increasing with the approach of the holiday baking season, and supply remains limited due to the ongoing impact and threat of avian influenza, according to analysts.

MILK & CREAM

According to analysts, domestic milk supplies are increasing, as colder temperatures promote increased yields. September milk output was 1.5% above 2021 levels, as milk production is steady or trending higher across the country.

The data contained in the Farmer’s Report is provided for informational purposes only, is not tailored to your specific purchasing needs, and is not intended as a substitute for any other publicly-available market data or information. The Farmer’s Report is compiled from the last-received market data provided by the United States Department of Agriculture (USDA) and/or other market sources, and is subject to change without notice. Nothing herein is the opinion of US Foods®. US Foods neither assumes any legal liability nor makes any warranty or guaranty, either express or implied, regarding the completeness, accuracy or usefulness of this information.