Market Update Archive
February 4, 2011
Dairy Markets: Déjà Vu All Over Again?
By Bob Yonkers, Ph.D., IDFA Chief Economist What is going on in our dairy markets? First it was butter; the CME spot price increased from $1.53 per pound the last day of November to $2.10 less than six weeks later (and has remained there since). Next was nonfat dry milk, increasing on the CME spot market from $1.2250 on December 8 to $1.72 per pound...
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December 20, 2010
Market Update: MILC Payment Rates: A Look Behind, a Peek Ahead
By Bob Yonkers, Ph.D., IDFA Chief Economist The Milk Income Loss Contract (MILC) program, operated by the U.S. Department of Agriculture's Farm Service Agency (FSA), has its roots in the 2002 Farm Bill. This program was first designed to make direct payments to dairy producers when farm milk prices fell below a target price specified by Congress, namely...
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November 19, 2010
Market Update: 'World Dairy Situation 2010' Tracks Growing Demand
By Bob Yonkers, Ph.D., IDFA Chief Economist The International Dairy Federation last week released "The World Dairy Situation 2010" report at the World Dairy Summit in Auckland, New Zealand. Highlights from this annual report include many details about world trends in milk production, processing, trade and consumption, as well as farm milk and wholesale...
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October 29, 2010
Dairy Market Update: What's Ahead for Economy, Input Costs and Retail Food Prices
While federal economists say recovery from the recent recession remains slow, the country's gross domestic product is expected to grow. However, feed and energy costs for the U.S. dairy industry appear to be headed higher. The expected price for corn, just one example, may reach its highest marketing-year average in history. According to the U.S. Department...
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September 24, 2010
Market Update: Policy Reform Must Aid, Not Hinder, Industry Growth
By Bob Yonkers, Ph.D., IDFA Chief Economist A new report by the Food and Agricultural Policy Research Institute at the University of Missouri (FAPRI-MU) analyzes an old dairy policy idea: requiring that all fluid milk products marketed in the United States increase the content of nonfat solids they contain. However, unlike in the past when this topic...
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August 27, 2010
Market Update: Overall Dairy Demand Strong, but Fluid Milk Sales Sag
By Bob Yonkers, Ph.D., IDFA Chief Economist While overall dairy demand is stronger so far in 2010 than last year, mainly thanks to greater exports, there is at least one dark cloud hovering overhead. According to estimates from the U.S. Department of Agriculture's Agricultural Marketing Service (AMS), total U.S. fluid dairy product sales through June...
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July 30, 2010
Dairy Market Update: Milk Supply and Demand Up in 2010
By Rob Blaufuss, IDFA Economic Analyst For the fourth consecutive month, total U.S. milk production experienced positive year-over-year growth, according to the June Milk Production report released by the National Agricultural Statistics Service (NASS). Total U.S. milk production was 16.324 billion pounds during June 2010, a 2.4 percent increase over...
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June 25, 2010
Dairy Market Update: Wholesale Prices Recover from Last Year's Lows
By Bob Yonkers, IDFA Chief Economist, Ph.D. While dairy market prices have moved both up and down in the first half of 2010, wholesale dairy product prices on average clearly have recovered from the low levels seen last year. In fact, weekly prices so far in 2010, as published by the National Agricultural Statistics Service (NASS), have averaged above...
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May 28, 2010
Dairy Market Update: USDA Outlook Predicts Continued Strength
By Bob Yonkers, IDFA Chief Economist, Ph.D. Heading into the summer of 2010, dairy markets in the United States and abroad have recovered from the distress of 2009. According to the U.S. Department of Agriculture, the outlook is for continued strength in dairy markets. On the supply side, U.S. farm milk production increased by 1.5 percent in April...
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April 30, 2010
Market Update: Farm Share of Retail Dairy Price Not Declining over Time
By Bob Yonkers, IDFA Chief Economist, Ph.D. A great deal of attention in the dairy industry has focused lately on farm milk prices and their relationship to retail prices for milk and dairy products. Data from two U.S. Department of Agriculture resources demonstrate that the farm value of a dairy retail market basket varies from year to year, but it...
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