The KDM Dairy Report 4/29/2022

Cheese: united States milk supplies are growing, thus becoming more available and moving into cheese production. Spot milk prices in the upper Midwest ranged from $2.50 to $1.50 under Class III this week. Comparing this year’s prices to last year’s, spot milk topped out at level last year during week 17, while the low end was $5.00 under Class. Lighter COVID restrictions and spring weather have increased food service demand, according to contacts in the West. Midwestern cheesemakers continue to relay steady to strong demand notes, as well. Eastern cheese stocks are aplenty, but steady demand has allayed much consternation regarding oversupply. Despite some ups and downs on the CME, general market tones are healthy. (USDA Cheese Highlights)

Butter: Cream availability ranges from steady to available for butter processors nationwide. That said, Eastern butter plant contacts relay a snugness on the cream market following the past few weeks. Western cream continues to move eastbound, as some Midwestern butter plant managers report clearing cream from both local and Western sources. There are growing and vocal concerns regarding the domestic butter inventory come late summer/fall, as domestic demand is expected to seasonally intensify, while export interests continue to keep churners churning. Butter market tones remain on solid ground, despite moving into the low $2.60s on the CME from the previous range in the $2.70s over the past few weeks. (USDA Butter Highlights)

Dry whey prices continue to hold somewhat firm in the low-$.60s for a majority of spot trading, while the range is holding onto some higher prices based on brand preference. Still, there were some downticks on the top of the range and mostly series. Production has steadied in recent months, but it remains well behind levels seen in early 2020. Seasonally, milk is increasing at the farm level, but Class III production is facing the workforce challenges that much of the industry is. Plant managers have become seasoned in maneuvering through these choppy waters, as this will be the third consecutive flush season in which they have dealt with circumstances outside of their control limiting employment rosters. Whey offers have increased with the incremental increases in production recently. Animal feed whey trading was steady week to week, as prices dropped on the bottom of the range. Whey market tones lack certainty moving into May.  Market looks steady to softer. (USDA Dry Whey updates)