Market Update - August 5, 2009
USDA & Senate increase Support Prices for milk products seperately
The USDA increased the support price for Nonfat Dry Milk and Cheese this past week until November 1 as follows:
Nonfat Dry Milk - $.80/lb to $.92/lb
Cheddar Cheese:
Blocks – $1.13/lb to $1.31/lb
Barrels – $1.10/lb to $1.28/lb
The Senate has increased the Support Prices with an addition of $350 million dollars to the program and price increases of:
Nonfat Dry Milk - $.05/lb
Cheddar Cheese
Blocks – $.09/lb
Barrels – $.09/lb
These price increases will increase the dairy markets for the near term however if the USDA revises the prices back to their original levels and the production of milk stays similar to current levels we could see another market crash at the end of 2009 as well.
Butter Support Price was not adjusted in this round of changes.
Whey Powder, WPC and Lactose stabilized this week. Overseas demand will need to continue to hold the markets at these levels.
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