Dairy bull market pauses to catch its breath

Increasing tension over trade in the first half of May led dairy manufacturers to begin selling off inventories. Many cooperatives had been building inventories of various products in anticipation that a trade deal between the U.S. and China was close, but that anticipation has given way to concern as import duties of up to 25 percent remain in place on various [...]

FAO Sugar Price Index finally showing gains?

After falling 2.8 percent in 2018, FAO’s Food Price Index (FFPI) is down 2.7 percent YOY for the first four months of 2019. (The index, adjusted for inflation, uses as baseline food price data from 2002 through 2004.) Looking at monthly data, April 2019 [...]

African swine fever: Hogs, China, & trade

One of the hottest current topics in agricultural markets is African swine fever, a virus ravaging the Chinese hog industry. Market concerns abound, from whether the virus can spread to other regions globally (such as the U.S.) to its potential impact on pork production [...]

Declining dairy herd finally translates into fall in milk production

Total U.S. dairy herd has been declining for the past 16 months as culling reduced the total number of cows nationwide. However, total milk output has remained steady on gains in production thanks to improved yields. The April report finally showed a nominal decrease [...]

Demand for nutritious beverages on the rise in China

In a recent report, USDA found urban Chinese consumers are eating and drinking healthier than in previous years, emphasizing “eating well” over “eating full.” This mindset, along with a need for convenient nutrition, has led to growth in China’s beverage industry. In fact, profit [...]

Livestock and poultry populations up over 2 percent YOY

There were nearly 12.0 million head of cattle on feed as of Apr. 1, up 2 percent year over year and a recent record. March’s cold, wet weather in parts of the Plains and Midwest contributed to the higher number. May-Aug numbers should decline [...]

Rise in dairy product inventories

While trade tensions between U.S. and China are not yet settled and NAFTA’s replacement, USMCA, has not been ratified, exports of dairy products that would normally be shipping to these two key destinations have been lagging. Following U.S. steel and aluminum tariffs, China and [...]

Weather continues to support bullish trend in Oceania dairy prices

Results from Mar. 5 GDT auction showed continued resilience for the bullish trajectory of prices out of New Zealand. Across dairy ingredients, prices were up on average 3.3 percent, with particular strength in fat-containing products. Two core export commodities of Fonterra, anhydrous milkfat and whole [...]