Geopolitically, financially, emotionally, 2017 could be the most volatile year since the end of World War II.
Over the last two months USDA has reported monthly milk production has exceeded last year’s volumes by more than 2%. The question that naturally follows those numbers is where will all this milk go?
On Thursday USDA announced average prices for product for the month of December.
Even though current inventory is large, it is not overwhelming the market with the anticipation for improving demand and we hope better milk prices will come to pass.
In a marketplace driven by consumer demand and food corporations chasing sales and quarterly profits, these mandatory requirements are the new cost of doing business.
It seems the highest milk price of the year taking place in December is unusual. However, historically it has been more common than one would think.
Kansas dairy farmers challenges Chipotle on cow care, and the restaurant chain actually responded.
Cheese prices have declined 15 cents over the past two weeks, yet Class III milk futures are higher. There seems to be a bullish attitude prevalent in the market in anticipation of higher prices due to potentially increasing world demand.
Budget restraints make most fixes difficult.
Strong milk output will assure sufficient supply to meet demand leaving continued strong milk prices up to demand.