Dairy
Milk, SMP, Butter, Cheese
The average weekly price of US Milk as of October 29 decreased by 4.3% M-O-M and declined by 22.2% Y-O-Y to $0.17/lb. U.S. milk production remains unseasonably high as favorable weather across many producing regions and generally healthy cows sustain above‑normal yields. Strong milk flows reflect both higher milk per cow and milking herds following recent herd rebuilding, adding downward price pressure.
The average weekly price of US Butter as of October 29 decreased by 19.0% M-O-M and declined by 37.2% Y-O-Y to $1.71/lb. Butter production remained elevated over the month with increased milk components, fuelling excess cream in the market, supporting higher profit margins for producers, adding downward price pressure on the month.
The average weekly price of US NFDM - SMP as of October 29 decreased by 8.0% M-O-M and declined by 14.3% Y-O-Y to $2,539.70/mt. Increased milk volumes supported manufactures to run at or near capacity during the month, coupled with steady to weak domestic demand and sluggish international demand as global trade partner offers remain at a discount when compared to US NFDM.
The average weekly price of US Cheddar as of October 29 decreased by 4.0% M-O-M and declined by 22.0% Y-O-Y to $1.74/lb. US cheddar prices continued to fall again this month with new and expanding capacity ramping up production and strong milk flows supporting it. Export demand remains resilient as US product is at a price advantage when compared to global partner offerings.
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