Fireworks in Class III Milk and Cheese Prices

The Class III milk and cheese prices have seen fireworks in the past few weeks. Ryan Yonkman, the vice president of producer services for Ever.Ag, says it's due to bullish buying events and reports stacking up on each other…

“We had a milk production report that certainly showcased we’re still negative with a monster revision to June milk production by, I believe it was .8% revision. So you’ve got this continued storyline of, hey, U.S. milk supply is tight and we are now walking into our busiest time of year in regards to our demand season really starts to kick into high gear between now and the next couple of months as schools come back online, football starts, pizza season, Labor Day, all these things.”

Essentially, he says tight supply is walking into the teeth of the high-demand season…

“We know our heifer inventories are tight. We are finishing up what’s been a very hot summer. And then on top that we’ve had the avian flu which has really worked its way around the country to the dismay of many dairies but, you know, it has been a market factor in regards to the supply storage.”

Want to keep this discussion going? You’re in luck! Yonkman will join us again tomorrow to talk about better-than-expected demand and highs that we’re seeing across the global market.