Analysts at Rabobank are expecting supply from the seven major milk-producing regions of the world to increase modestly over the second half of 2024 due to recent improvements in milk prices and cheaper feed.

Monthly Class III-IV milk prices are the highest since the closing months of 2022, a sign Federal Milk Marketing Orders (FMMOs) will post stronger blend prices for August milk marketings.

In economic news this week: U.S. exporters’ secure rights to use common food names in Chilean market. Global dairy trade, FSA interest rates and farmer sentiment shift downward, and the USDA launched an online debt consolidation tool.

In the news this past week, HPAI has been confirmed in three California dairy herds, and field trials may begin for vaccines to combat the virus.

The USDA National Agricultural Statistics Service (NASS) released its Agricultural Prices report Aug. 30, which includes feed costs used to calculate the July Dairy Margin Coverage (DMC) program margins and indemnity payments. July’s margin was $12.33 per hundredweight (cwt).

To date in 2024, total dairy exports are valued at $5.9 billion with the fiscal year-end forecast at $8 billion.

Futures prices for milk and feed are looking favorable for dairy producers with the fourth quarter of 2024 on the horizon. At the time of this report, the all-milk price forecast was at a staggering $25.06 per hundredweight (cwt) for September and feed costs were at $10.27 per cwt, the lowest since 2020.

In the news this week: Environmental groups intend to sue the EPA over establishing emission factors for livestock operation, a workshop will be held for the FMMO proposed changes, Grande Cheese launches an on-farm sustainability program, and MMPA appoints a new CFO.