The T.C. Jacoby Weekly Market Report Week Ending October 18, 2024
The dairy markets bounced this week, rejecting the notion that lower prices will be necessary to balance supply and demand. After the dramatic declines seen in late September and early October, every product traded at the CME spot market moved upward this week. The bulls have clearly found some traction.
The dairy markets bounced this week, rejecting the notion that lower prices will be necessary to balance supply and demand. After the dramatic declines seen in late September and early October, every product traded at the CME spot market moved upward this week. While the situation remains precarious, the bulls have clearly found some traction.
Renewed supply concerns have underpinned the rising prices. Additional information is emerging about the impact of avian influenza in California dairy herds and indicates that mortality among infected animals may be higher than originally believed. In addition, high temperatures are persisting in California, which is placing additional pressure on milk production in the country’s largest dairy state. Output in other regions is faring somewhat better, particularly in the Midwest where cooler temperatures and highquality feed are boosting both volumes and milk component levels.
October 21, 2024
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