Milk prices fall as economy slows and production increases

A number of factors are pushing milk prices down, including inflation and slowing domestic demand.

Milk prices are trending downward. Prices for the Class III he peaked at $25.21 in May, fell to $22.52 in July, and will be around $20 in August. The Class IV price will peak at $25.83 in June, drop to $25.79 in July, and be around $24.70 in August.

A modest increase in milk production, inflation and a slowing economy have weakened domestic demand, contributing to the decline. Milk production decreased by 0.9% year-on-year from January to May, in June he decreased by 0.1%, and in July he increased by 0.2%. Inflation and a slowing economy are reducing restaurant traffic and softening cheese and butter sales.

Cheese and whey prices drop Class III

Dairy prices rose modestly after softening in late July and August. Declining cheese and whey prices have lowered Class III prices. The price of a 40-pound cheddar block averaged over $2 a pound from March to July, and in April he hit a high of $2.3399. The block price he started at $1.7850 per pound in August and has moved up and down at $1.82 since today.

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