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Dairy Price Boost

There was a lot of dairy news to sift through this last week, from a huge jump in the milk price to more government aid on the way. HighGround Dairy's Lucas Fuess sorts it out with Lee Mielke:

June Class III: $21.04

The Agriculture Department announced the June Dairy Month Federal order Class III benchmark milk price Wednesday at $21.04 per hundredweight, up a spectacular $8.90 from May and $4.77 above June 2019. It is the highest Class III price since November 2014 and boosts...

Darigold Announces Carbon-neutral Goal For 2050

Darigold, Inc. and the Northwest Dairy Association (NDA) announced their goal to achieve carbon neutrality by 2050. Read More

Why Vaccines Fail

Vaccination programs are an important part of herd health, but sometimes a vaccine can fail. This month's "Ask the Vet" segment, Dr Ryan Leiterman explores why this happens and the importance of booster shots, or repeat vaccinations.

Milk Price Recovery

Last Wednesday's Hoards Dairyman DairyLivestream program examined the current recovery in milk prices. Managing editor Corey Geiger talks about it with Lee Mielke on today's Dairy Radio:

The Power of Magnesium

Dr. Mike Hutjens tells us all about magnesium in this week's Feed Forum Friday:

Dairy CFAP Update

More than 15,000 dairy operators have signed up for the Coronovirus Food Assistance Program (CFAP). National Milk's Chris Galen joined us on Dairy Radio with an update:

The Heat Is On

Dr. Ryan Leiterman, director of technical services with Crystal Creek discusses managing heat stress in calves:

Grocer and Restaurant Perspective

Brandon Scholz, President and CEO of the Wisconsin Grocers Association and Susan Quam, Executive Vice President of the Wisconsin Restaurant Association discuss, on PDPW's Dairy Signal, what kind of impact the COVID-19 situation has had on grocery stores and...

Stronger Dairy Prices Ahead

The worst of the coronavirus-induced plunge in the dairy economy may be over. The sharp drop in dairy product prices in April, prompted by the pandemic, has been followed by a strong recovery in cash market prices in May that’s continuing into June. That's according...

Oversupply, Trade Talks Affecting Dairy Markets

FC Stone’s Dave Kurzawski addressed the global markets on today’s Dairy Radio Now,  stating “A majority of the talk surrounding the recent and drastic sell-off on Cheese and Class III (futures) revolves around President Trump’s newly imposed tariffs on the likes of China and Mexico. However, putting the blame solely on the administration is a bit of a stretch.” “A larger issue at play here seems to be the current oversupply of barrels in the marketplace, which is not an abundantly exportable cheese.” 

Kurzawski admitted that, while the Mexican tariffs sent jitters throughout the market and are not good when trying to grow U.S. dairy exports, the reality is that those tariffs are only projected to effect a 4-5 cent reduction in the cheese price and not the 25-30 cents that we saw in the barrel market over the last couple weeks. “The seeds of this precipitous decline in the spot cheese market, particularly on the barrel side in the month of June, were sown probably a month or two ago,” he argued. Global dairy demand was great the first four to five months of 2018, he said, but in mid-May “the spigot was turned off, things calmed down, and the markets were of the mindset that we have enough milk for the time being. We had really good demand that was eating away at that milk, allowing us to make cheese, but now we have a lot of fresh cheese sitting out there and the phone stopped ringing.” 

“The sellers got really aggressive and said, we can bleed out slowly at $1.40 (per pound) or we can go down and try to find a bid and I think they found a bid at the low $1.20s,” he said, though he doesn’t believe prices will stay that low for long. Summer heat can change this in a hurry, he said, as can other factors like cows coming off rbST in key areas, labor issues, poor income-over-feed margins, and continued good global demand. “This is not 2009,” he concluded, “even though we can see a price on the spot barrel market that we haven’t seen since 2009.”

 

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