Hot Weather Boosts Cheese Markets

An article on Dairy Herd Management

The month of July has been friendly for most commodities as grains have made leaps and bounds higher from the June 30th lows, crude oil follows suit with heating oil and gasoline all with the uncertainty of war escalations in the Black Sea region as well as the Strait of Hormuz on top of hot dry weather forecasts. Dairy products too are feeling the effects of volatility in the midst of all of this market news, bringing speculators in to trade more daily trends rather than the fundamental long term positions we are used to seeing in the dairy futures market.

Class III has rallied over 30 cents since July 1st, Class IV 40 cents higher, with Cheese 35 cents higher. Butter, on the other hand, has fallen from it’s small peak on June 30th, roughly 13 cents on the July futures contract, bucking the trend of the rest of the dairy markets due to unconcerned buyers amid a major heat wave limiting milk production in many parts of the country.

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