Dairy Prices Improve Prior to Correction
The dairy markets increased throughout last week followed by downward price pressure on Friday because of the Brexit vote. “The market was primed for a price correction,” said Robin Scmahl market analyst with AgDairy. “We saw weakness is cash prices, but still futures contracts increased at the beginning of the week.”
Scmahl says at one point last week futures contracts for September and October reached $17. Soon after, they returned to where they started the week.
Cash Price Highlights
Butter went down $0.0225 with 13 loads traded
Block cheese went down $0.025 with 2 loads traded
Barrel cheese declined $0.01 despite there being no loads traded.
Nonfat Dry Milk increase $0.575 with 25 loads traded
According to Scmahl, it was an optimistic week for the dairy markets.
“The outlook improved but how long it’s going to stay that way is anybody’s guess,” he says.
Listen to Scmahl’s full comments from the Weekly Dairy Market Wrap below.