Cheap Corn Makes Cheap Milk

Plourd spoke at the Associated Milk Producers Association annual meeting here in Minnesota this week. “One of the things we’re struggling with is what it means to live in a world where corn is $3.50/bu and not $7. We’re not going to see a lot of $20 milk with corn at less than $4/bu,” he says.

In fact, $3.50/bu corn is more supportive of Class III prices in the $15.25 to $15.50 range, he says. Markets will get a better handle on where corn prices are headed with today’s USDA’s Prospective Plantings. USDA is projecting a 4% decrease in corn plantings, and a 7% boost to soybean acres.

The other backstop on prices are cheese and butter inventory stocks. “February cheese stocks growth is well above average, and we’re on track to peak at 1.3 billion pounds of cheese in stocks,” says Plourd. “Butter stocks are at 61 million pounds, up 20% year over year.”

“2017 is still pricing out ahead of 2016 and the five-year average,” he says. “And cow numbers are still rising and are at their highest level since 1996.”

Given current market conditions, Blimling is projecting a 2.2% increase in U.S milk production this year. How much milk prices change will depend on consumer demand and consumption. If cheese demand is up only 2%, says Plourd, that could mean markets will slip and prices deteriorate.


Source: MilkBusiness



Any claim arising from the information contained on the eDairy News website shall be submitted to the competence of the ordinary courts of the First Judicial District of the Province of Cordoba (Primera Circunscripción Judicial de la Provincia de Cordoba), Republic of Argentina, in the city of Córdoba, excluding any other jurisdiction (Federal jurisdiction is also excluded).


Criteria in the moderation of comments that eDairy News will take into consideration in all its publications.

  • They will not be considered insults of any kind against anyone,, whether a user, moderator or publisher. Complaints made with the name and surname of the author of the commentary will only be accepted after confirmation by the moderator.
  • Unsubstantiated and gratuitous destructive criticism or expressions of bad taste, whether offensive, racist or xenophobic.
  • SPAM, (Insert links to web pages not related to the subject, provide emails, etc...)
  • Comments that are meaningless with the footnote or the dairy sector.

Related posts