DAIRY TRENDS

Farmer's Report

Dairy Trends - June 17, 2022

All dairy pricing trends are based on USDA and CME data as of June 15, 2022.

BUTTER

On the CME, butter prices have declined slightly after rising last week to levels last reached in September 2015, according to Cheese Reporter. The USDA confirmed butter output in April was down 1% year-over-year, the smallest April output since 2019. With inventories still sitting at tight levels heading into summer and fall, concerns continue to grow around the ability to grow supplies further, which is prompting stockpiling and causing the spikes in pricing over the last few weeks, according to analysts.

CHEESE

The cheese markets are down this week. The latest USDA Cold Storage Report shows total cheese up to new all-time highs. Retail demand remains soft, due to historically high pricing levels, according to analysts. Production remains strong.

SHELL EGGS

Urner Barry reports that shell egg prices are up this week, as there have been two new cases of avian influenza reported in commercial laying flocks in Colorado during the past week. Production is down, given the number of birds lost, which is keeping markets higher than usual for this time of year.

MILK & CREAM

Analysts report that domestic milk production is active across most of the country. Analysts expect Class 1 demand to start to taper off over the next few weeks, as schools begin their summer breaks.

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.