Chris Galen, NMPF
The key factors affecting the recent dairy market outlook have been the slow unwinding of the previous expansion of milk and cheese production, increased domestic and export use of cheese and butter, and continued large stocks of these products.
Chris Galen, Sr. VP of Communications with the National Milk Producers Federation shares with us the September Dairy Market Report, prepared by Dairy Managment Inc. and NMPF.
Cheese prices increased inAugust following a drop in July.TheJuly U.S.average all-milk priceremained unchanged
from June at $17.30 per hundredweight.Cheese prices have been the most variablecomponent of milk pricing
recently,with butter prices likely peaking and nonfat dry milk and dry whey prices steadily easing down.
Slower production growth and increased domesticcommercial use and exports of American-typecheese have
contended with record stock levels to establish the basic market tonefor cheese prices.A moderateincrease
in the monthly USDA Margin Protection Program (MPP) feed cost formula calculation reduced the MPP
monthly margin in July, but left it still above $9 per hundredweight.
