In this brief market report, we explore the updated 2023 milk supply and usage figures and the 2024 milk production and price forecasts. These updates reflect the latest changes in dairy production, storage data, and market trends, providing a snapshot of the dairy industry's future landscape.
2024 milk production forecasts are lowered due to a decreased dairy cow inventory and slower output per cow, while domestic use on a fat basis remains unchanged. Fat-basis imports are up due to higher demand, but fat-basis exports drop, especially for cheese and butter.
Price forecasts for 2024 show an increase in butter and cheese prices due to strong demand and market strength, whereas nonfat dry milk (NDM) and whey prices are projected to decrease. The all-milk price is anticipated to rise to $21.25 per cwt.
For 2024, the outlook for milk production is adjusted downward due to a reduced dairy cow inventory and slower growth in milk output per cow. This decrease in supply is juxtaposed with stable domestic use, increased fat-basis imports due to rising demand for dairy products, and a decline in fat-basis exports, particularly cheese and butter. On the pricing front, the butter and cheese price forecasts are revised up, driven by strong demand and market strength, whereas nonfat dry milk (NDM) and whey prices are expected to fall. As a result, the all milk price for 2024 is projected at $21.25 per cwt, signaling a positive direction for dairy prices overall.
These market dynamics highlight the complex factors influencing the dairy sector, including domestic consumption trends and international trade shifts. For businesses within the dairy industry, understanding these trends is crucial for navigating market uncertainties.
Hedgify's platform offers businesses the tools to manage market volatility effectively, by locking in prices for essential commodities like milk. This capability is invaluable for ensuring cost stability and financial predictability amidst the fluctuating dairy market landscape, highlighting the importance of strategic planning and risk management in today's dynamic market conditions.
The information provided in this market insight is for general informational purposes and should not be considered financial advice. It is not intended to offer any financial recommendations or endorsements. Any decisions made based on the content are the sole responsibility of the reader.
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