Quarterly Dairy and Beef Cattle Market Snapshots

With second quarter's Market Snapshots for dairy cattle is Northwest Farm Credit Services Michael Stolp.

Stolp: "Dairy markets are uncertain, but recently improved. After increasing more than $2 per cwt between May and June, Class III milk prices created profit opportunities for dairy producers. Higher prices are attributed to improving domestic demand and production challenges associated with high temperatures in the Midwest and Southwest. Globally, low milk prices are slowing milk production in the European Union, New Zealand and Australia."

The dairy snapshot reported that the gap between the growing milk supply and total disappearance (domestic use and exports) remains relatively high, resulting in inventory growth of 4.1 percent. Stolp continues with an overview of the beef cattle snapshot

Stolp: "Cattle markets are soft, pressured by increased supply and competition from poultry and pork. The cow herd grew in 2015 and is expected to continue growing at a slower pace in 2016. Total cattle on feed in June grew 2.2 percent from the prior year. Higher beef supplies haven't translated to lower retail beef prices. Comparatively lower pork and poultry prices represent solid competition for consumers' dollars and are expected to create headwinds for cow/calf producers through year end."