It’s not the news dairy producers want to hear, but one analyst says the outlook for milk prices according to the futures market is not very good.
Dairy analyst Robin Schmahl says with current fundamentals the issue is not likely to change in the near term unless sellers of cheese reduce their offerings on the daily CME spot market. He says the market will need to prove itself before traders become more aggressive buyers.
“We’ve seen retail prices increasing, we’ve seen food service prices increasing and that’s because of higher labor [costs], higher interest rates, a lower availability of transportation trucks, and that all adds up to the cost of milk [in the store] going up instead of following dairy prices down,” Schmahl says.
By AGDAY TV
May 30, 2023