MRV BLOG: MRV Market Commentary as of April 19, 2022

Domestic

MRV Forecasts another increase for fluid milk for the month of May of $0.08, and CME shows this stretching just another month out to June with another increase before slowing down and beginning to decline in July. Although butter is still high, it didn’t increase (WoW) but rather decreased $0.043. NFDM and whey had small increases of $0.017 and $0.009 respectively. Cheese has its price top the others at $0.065 increase week over week (500# Barrel).

Cheese

Cheese’s popularity grows each and every year, and this year is exceptionally difficult to keep up so far with a constriction in supply due to manufacturers still experiencing staffing and logistical issues. This has had a large hinderance on production, however, we foresee cheese prices remaining high. These higher prices have elevated Class 3 milk, and for the first time in months, Class 3 has surpassed Class 4. Cheese exports remain strong with an increase of 13% in February over February 2021.

Antibiotics

Since the introduction of the VFD (Veterinary Feed Directive) in 2017, veterinary oversight on antibiotics had heightened, and with it, antibiotics in feed and water had been removed from OTC (Over the counter) channels. However, these regulations hadn’t taken into account other deliverables like injections, mastitis tubes, or boluses. Now, FDA has issued a directive to bring all of these into light, meaning, many feed and farm stores will be troubled to act as a “pharmacy” to provide what was once OTC. The FDA directive is to be finalized and implemented on 6/11/23. This may drive higher prices to produce similar quantity in the future.