Tom Benson, Vice President Strategic Sourcing
With summer in full swing, we are beginning to see the full impact of heat as it pertains to milk and component comparisons. Butter and cheese supplies have been rising with weaker prices forecasted, while powder markets have remained robust. Sweet whey prices have been stable but WPC 34 prices and non-fat dry milk saw upward pressure. We also see a more bullish tone on lactose and whey permeate ,which would indicated that sweet whey prices could also join in on the upward momentum.
The WPC 80 market prices seemed to hit a low point in June and now have a more firm feel. WPI prices have rebounded more strongly and it appears that new spot orders will have difficulty being filled. Demand both domestically and internationally is unusually strong for July and August orders.
If heat continues to persists throughout the dairy producing states, this will only add to the more bullish tone that we feel going into August and September.