Price Rally Hinges on Dollar’s Strength
The milk market has been stagnant for quite some time. Naomi Blohm of Stewart-Peterson, LLC told AgDay’s Clinton Giffiths we will continue to see a sideways market for weeks to come as milk prices remain suppressed under $14.
“Well, $13.25 continues to be really good support, and $14 is resistance,” Blohm explains. This is largely due to production. Blohm says production in the U.S. is strong and in areas around the world like the Oceana region where we had seen production soften, farmers are picking back up.
“We’re back to a story where the supplies in the U.S. and around the world are really ample,” she says.
Exports of dairy products were up 4% in February, which Blohm says is a “really good story” considering the strength of the dollar.
“If we at all see the dollar drop and we see exports rally, that’s what would allow milk prices to improve and break the $14 mark,” she said.
Blohm encourages producers to take advantage of any rallies that present opportunities to lock in better prices at some level. Otherwise, she says it’s going to be a quiet ride for quite some time.
Watch the full segment of AgDay’s AgriBusiness below: