Global Milk Prices and Trends

In August 2024, global feed prices experienced a downward trend, driven by improved production conditions and enhanced market competitiveness. This report details the recent changes in feed prices, explores their underlying causes, and provides forecasts based on the discussion at the IFCN Dairy Researchers Meeting on August 28, 2024.

Feed Price Analysis

Feed Type	Trend	Price (USD/100 kg)	Influential Factors
Corn	Decreased	Approx. 43-44	Increased area planted and harvested, robust US demand and exports, surge in Chinese imports
Soybean	Decreased	Slight decline	Favorable weather, shifts in biofuel demand, harvest in Northern Hemisphere
General	Stabilizing	Around 23 (CME)	Competitive market dynamics, slight EU price increases due to dry conditions

Factors Influencing Price Reduction

Corn: Expansion in planted and harvested areas, coupled with strong domestic and export demands, especially from the US, contributed to the decrease. Additionally, competitive pricing facilitated a surge in Chinese imports.

Soybean: Prices declined due to optimal weather conditions that increased yield, alongside fluctuating demands in the biofuel sector. The ongoing harvest in the Northern Hemisphere also pushed prices down.

Future Outlook

Indicator	Forecast	Key Drivers
CME Feed Prices	Slight upward trend	Stabilization at around 23 USD/100 kg feed
EU Feed Prices	Incremental increase	Weather-induced yield challenges in EU
Corn and Soybean	Stability or slight decrease	Favorable weather continuing in the Northern Hemisphere

Cheese Market

In early September 2024, the cheese market, which had experienced a surge in prices, began to stabilize. The Vesper Price Index reported the following cheese prices for September 4, 2024:

Cheese Type	Price (per lb)
Cheddar Curd	$2.38
Emmental	$2.51
Gouda	$2.33
Mozzarella (EU)	$2.31
Mozzarella (U.S.)	$2.18

Cheese prices are expected to rise through the start of October 2024, followed by a potential decline. Buyers are encouraged to lock in prices if they anticipate continued price increases, though waiting may offer opportunities to purchase at lower prices later in the year. Traders and producers are targeting higher prices due to limited stock availability, and the level of available stock will influence pricing trends in the coming weeks.

Whey Protein and Casein Market

The whey protein concentrates (WPC) and isolates (WPI) markets have remained tight due to increasing demand. The Global Dairy Trade (GDT) index experienced slight fluctuations, though whole milk powder (WMP) and SMP demand remained strong, particularly from North Asia. WMP prices fell slightly despite stable demand. Additionally, favorable weather conditions in key dairy-producing regions may contribute to increased milk production in the coming months.

Conclusion

The U.S. dairy market experienced modest milk price decreases and stabilizing cheese prices in August and early September. Future market developments will depend heavily on global supply-demand dynamics, especially the import demand from China and the upcoming corn and soybean harvests. Cheese prices are expected to rise through early October before potentially declining towards the end of the year.