Key Takeaways:
Demand and capacity decide where milk growth lands. Italian cheese is up 4.2 percent in 2026, and milk output is growing fastest in Kansas, South Dakota and Texas, where the new plants are located. Price spreads decide where the marginal milk goes. The Class IV premium over Class III peaked at $5.40 in May, and nonfat dry milk output is up 10.5 percent through August. In California, with flat milk production, cheese fell 6.6 percent while nonfat dry milk rose 28.2 percent. Make allowances are not a precise lever. Their effect is measured in cents against spreads measured in dollars, and it has not been isolated in the data. Watch September and October nonfat dry milk output. The premium narrowed to $0.72 in August before rec...
What You Need to Know Today: The U.S. dollar continued to strengthen Thursday as persistent inflation reinforced expectations for additional Federal Reserve interest rate hikes. Higher Treasury yields have helped support the dollar, potentially reducing the competitiveness of U.S. agricultural...
In yesterday’s WASDE, USDA reduced its overall red meat and poultry production forecast for 2026 as declines in beef and broiler output more than offset increases in pork and turkey production. Fourth-quarter beef production was revised downward because of slower fed cattle marketings and...
Key Takeaways: Dry bulk freight markets were stronger this week, but the rally was uneven and due to divergent dynamics across basins and vessel classes. Panamax markets were broadly higher, but Atlantic grain demand was primarily responsible while Asian activity was subdued. That trend...
