Fueled by unsustainable high dairy product prices, herd continues to grow

Monday’s USDA milk production reports for August showed an abundance of milk and dairy cows for the market to absorb. Not only were the previous month’s figures revised higher, but the August total showed continued growth in the herd, with over 11,000 heifers more [...]

July nonfat dry milk stocks highest in 13 years

The latest dairy products report showed a continued build in many dairy product categories. Cheese was the obvious winner, with total output in July up 1.1 percent from July 2021 and showing a nominal gain of 0.5 percent month over month. Both American- and [...]

FAO Food Price Index falls to seven-month low

Adjusted for inflation, FAO’s Food Price Index (FPI) fell 1.9 percent from July to a seven-month low but was still up 6% YOY. This is a change from prices in July, up 11 percent YOY, and from May and June prices, up 20 percent [...]

Commodity ingredient intelligence

We hope you have been finding our In the Know blog both useful and informative. But did you know that our IQ Ingredient Intelligence platform provides multiple daily commentaries on a variety of commodity and ingredient markets? In addition, the platform offer access to [...]

Food CPI up 10.9% YOY

Data reported by BLS shows that food inflation was 1.1 percent in July, with the Consumer Price Index (CPI) for food now up 10.9 percent YOY. The major contributor has been the price of food at home, up 13.1 percent YOY; food away from [...]

Dairy prices finally acting rationally?

After a solid rally and underreporting of herd statistics in the first half of the year, corrections in USDA cow numbers, solid inventories of dried powder, and waning demand are finally bringing welcome relief to overheated dairy markets. We previously addressed the systemic underreporting [...]

Food Price Index down for fourth straight month in July

FAO’s Food Price Index (FPI) fell for a fourth straight month in July, down by nearly 9 percent from June, adjusted for inflation, the steepest monthly drop, in percentage terms, since October 2008. The FPI is still up 11 percent YOY, supported especially by [...]

USDA makes big dairy adjustment, erasing 25% of estimated herd deficit

Although USDA typically tweaks the previous month’s dairy herd statistics, the most recent milk production figures released in July saw a much bigger adjustment. Changes were made going back many months, almost to the start of the calendar year, most months’ numbers. So, rather [...]

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