QT [AI]: Morning Commodity Market Report for Dairy - November 20, 2024
<div class=\"default-font-wrapper\" style=\"line-height: 1;font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\"><p id=\"isPasted\" style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: center; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong data-olk-copy-source=\"MessageBody\"><img src=\"https://download.qtmarketcenter.com/jay/QT AI logo (2).png\" style=\"width: 300px;\" class=\"fr-fic fr-dib fr-fil\" success=\"true\" filename=\"QT AI logo (2).png\">Morning Commodity Market Report for Dairy - November 20, 2024</strong></p><p style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong>Overview:</strong> This morning’s report focuses on key commodity dairy products: milk, cheese, and butter, highlighting current prices, recent trends, weather conditions affecting the U.S. dairy market, and projections for the upcoming year.</p><p style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong>Price Overview:</strong> As of November 19, 2024, the following average prices were recorded for essential dairy products:</p><ul style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><li><strong>Milk (All Milk)</strong>: $25.44 per hundredweight</li><li><strong>Cheddar Cheese</strong>: Approximately $2.14 per pound</li><li><strong>Butter</strong>: Approximately $2.87 per pound</li></ul><p style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong>Production and Projections:</strong> The USDA has released early projections indicating continued growth in U.S. milk production, expecting production levels to rise from approximately 226.4 billion pounds in 2023 to around 253.1 billion pounds by 2034. Milking herd numbers are projected to stabilize around 9.4 million cows by 2034, with continued improvements in milk yield per cow expected to increase from current levels.</p><p style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong>Market Analysis:</strong></p><ul style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><li>Milk prices have shown consistent upward trends over the past month. Prices received by dairy farmers have strengthened, largely due to increased domestic demand for cheese and butter.</li><li>Wholesale dairy product prices, particularly for butter and cheese, have also seen minor fluctuations, influencing retail prices across the country positively.</li><li>Import levels for dairy products—including butter—are projected to stabilize, helping maintain competitive price structures.</li></ul><p style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong>Weather Conditions:</strong></p><ul style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><li>The forecast for the Central Valley of California, a critical farming region for dairy, indicates clear conditions with temperatures around 45.72°F (7.62°C). This favorable weather pattern promotes positive dairy farming operations without immediate threats of precipitation or severe weather that could disrupt production.</li></ul><p style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong>Factors Influencing the Market:</strong></p><ol style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><li><strong>Domestic Demand</strong>: Increased consumption of dairy products, particularly during holiday seasons, continues to support prices and production levels.</li><li><strong>Cost of Production</strong>: Rising costs of feed and overall inputs are being closely monitored as they may impact farmer profit margins.</li><li><strong>Export Markets</strong>: The U.S. remains competitive in the global marketplace, with export volumes of dairy products steadily rising, particularly to regions with growing middle-class populations.</li><li><strong>Regulatory Environment</strong>: Attention to dairy regulations and potential changes in policy could also affect market dynamics.</li></ol><p style=\'color: rgb(36, 36, 36); font-family: \"Segoe UI\", \"Segoe UI Web (West European)\", -apple-system, BlinkMacSystemFont, Roboto, \"Helvetica Neue\", sans-serif; font-size: 15px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; background-color: rgb(255, 255, 255); text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\'><strong>Conclusion:</strong> Overall, the dairy market appears to be on a steady growth trajectory as we head into 2025, with strong year-end demand expected to continue driving prices higher. Weather conditions are currently favorable, and production is projected to rise in the coming years, positioning the industry well amidst ongoing economic challenges.</p></div>