DAIRY TRENDS

Farmer's Report

Dairy Trends - August 16, 2019

All dairy pricing trends are based on USDA and CME data as of Aug. 14, 2019.

BUTTER

Butter production is mixed. Analysts report that this may be driven primarily by the strong cream demand from other seasonal producers continuing to pull butterfat, effecting the amount available for spot butter makers. The CME market has been rather stable the past few weeks.

CHEESE

Analyst state the block cheese market has found renewed buying interest, helping to push prices to new calendar year highs. The barrel found a little bit of support from the firming block prices. Cheese manufacturers have been running at elevated levels, but are having to pay more for milk supply. Demand has remained firm in the Midwest, with Western processors reporting less favorable demand. Overall inventories are considered more in balance than prior weeks, with each coastal region reporting inventories increasing. Analysts suspect the higher prices appear to have shut off additional interest for the time being, as the market consolidates at the new highs.

SHELL EGGS

Analyst are stating demand has continued to increase across the retail segment, due to heavier features along with back-to-school stockpiling. Analyst are also pointing to the low-price environment over the past few months, which has further supported even more layers to be taken out of production. This has reduced the amount of excess supplies ahead of the seasonally stronger demand period that we are heading into. Reports indicate that further processors/breakers are also feeling the pressure from the tighter supply situation, having to pay a premium for breaking stocks as they actively seek supply. Reports indicate the market is firm.

MILK & CREAM

Class I and class III milk prices are now at their highest level in a few years, as analysts point to school demand ramping up and lower milk production.

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.