milk pricing | Ag Proud

Economic Update: Dairy downturn, interest expenses highlight 2023 USDA income forecast

The USDA’s latest milk production and price forecasts are updated late this week.

December 4, 2023

Dave Natzke

Here’s an update on economic factors impacting your dairy finances as the calendar turns to December 2023.

Weekly Digest: November FMMO milk class prices announced

November 29, 2023

Dave Natzke

Checks for November milk production will again reflect diverging Federal Milk Marketing Order (FMMO) Class III-IV milk prices.

October FMMO uniform prices mixed as Class IV pooling dips

Class IV pooling volume, percentage were second-lowest in past two years.

November 15, 2023

Dave Natzke

Here’s Progressive Dairy’s monthly review of October FMMO data to provide some additional transparency to your milk check.

USDA outlook sees slower-than-expected growth in milk production

Recent gains in butter and nonfat dry milk prices have eroded more rapidly than previously expected.

November 10, 2023

Audrey Schmitz

Progressive Dairy reviews the USDA’s latest World Ag Supply and Demand Estimates (WASDE) and Crop Production reports to identify potential influences on dairy producer income.

FMMO Hearing: 8 weeks down, more to go

November 9, 2023

Kimmi Devaney

The first eight weeks of the Federal Milk Marketing Order (FMMO) Pricing Formula Hearing covered 18 of the original 22 proposals.

Strong opinions across the nation on Class I differential updates

November 3, 2023

Kimmi Devaney

Producers in several regions expressed strong opinions about changes to Class I differentials, which have not been adjusted since FMMO reform in 2000.

Economic Update: October FMMO milk class prices diverge

Meeting this week, the Federal Reserve Board’s Federal Open Market Committee (FOMC) held interest rates steady.

November 2, 2023

Dave Natzke

Struggling cheese and protein prices weakened the Class III price, offsetting strong butterfat and Class IV prices and widening the Class III-IV price spread, adding substantial Class IV depooling incentives.

Producers agree on preferred changes to Class I mover

November 2, 2023

Kimmi Devaney

While producer opinions differed greatly on most proposals during the Federal Milk Marketing Order (FMMO) Pricing Formula Hearing, one potential change that many agreed with is the need to return to the “higher of” Class III or IV in the Class I mover formula.

September DMC margin hits $8.44 per cwt

Overall U.S. average feed costs were lower and milk prices were up, pushing the milk income margin to the highest level since December 2022.

October 31, 2023

Dave Natzke

The USDA National Agricultural Statistics Service (NASS) released its latest Ag Prices report on Oct. 31, including factors used to calculate September 2023 Dairy Margin Coverage (DMC) margins and indemnity payments.