Dairy economists say the futures market and USDA forecasts
are too pessimistic about milk prices.
University of Wisconsin’s Mark Stephenson says dairy stocks
are drawing down and milk production has been flat which eventually should be
lead to stronger prices.
“When is it that we really see prices rebound? Frankly, I think that the futures market in the last month or so have kind of been fluttering, they haven’t decided what they want to do.”
Both he and analyst Bob Cropp say financial stress continues
in the dairy industry, dairy farmers continue to exit the business, cow
slaughter levels remain high, and dairy replacement numbers are the lowest in a
decade which all point to flat to lower milk production.
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