Are Milk Prices On The Path To Recovery?
The No. 1 question on the minds of producers is “When will prices be better?” By that they don’t mean higher prices for a hot minute, they mean long-term recovery. While it’s too soon to say milk prices are on their way out of their current 2.5 year slump, the lack of pressure Spring Flush has put on milk prices is a sign that points to recovery.
“Here's the one thing that we can all say, it's much better than we thought we would be seeing this time of the year,” Mike North, president of Commodity Risk Management told Chip Flory on AgriTalk After The Bell.
According to North, if you look back to 2016, this is when prices started moving into the sub $13 May price. May 2016 contracts ended up finishing at $12.76. He explained price pressure historically occurs this time of year.
“So with as many cows as we have, as big of inventories as we have, and as much milk as we have coming at us right now, the fact that we've been able to sustain you know $14 and near $15 prices for this time of the year is actually something that makes me happy,” North said.