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American milk price recovers after crash
In the United States, the milk price has recently been on the rise again. The US Department of Agriculture (USDA) has also raised its expectations for 2024. One of the causes is the lower milk supply, although there was no longer a decline in September.
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Last month, U.S. milk production in the top 24 dairy states was 8,73 million tons. This is virtually the same as the production volume a year earlier. This means that American milk production is picking up somewhat year-on-year, because in August and July the contraction was 0,7% and 0,8% respectively. In addition to higher production per cow, the figures show that the dairy herd is virtually no longer being reduced further.
Milk price is rising again
This is probably due to better market expectations. The American milk price has been under heavy pressure since October last year, but the upward trend has started again since August. Milk prices (class 2, 3 and 4) clearly show an increasing trend. On average, the American milk price briefly fell below $20 per CWT. By Dutch standards, this amounts to around €40 per 100 kilos.
A further increase is possible. The USDA expects milk prices to pass the $20 per CWT mark in the coming months. The forecasts have therefore been adjusted upwards. This is due to improved sentiment on the American butter and skimmed milk powder market, which is also visible in these markets in Europe. The cheese market in the US is under some pressure due to quite high inventories.