Condensed Milk

“Hardships often prepare ordinary people for an extraordinary destiny.” – C.S. Lewis

While markets have come off of their July low, prices are still pinching margins. With the futures market offering $16 milk for the first half of next year, is that an opportunity to take advantage of? “We’ve been telling guys to actually be taking some action,” Mike North of Commodity Risk Management Group says. “Here's why. If you look at the first half of 2019, it’s giving you $16 pricing. When you look at the last several years by way of first half averages, we've seen three of the last four years below that threshold.” North says that while the market is waiting to see what happens with trade, it’s providing farmers an opportunity to put a floor on their prices for next year. “It's showing us average prices and giving us an opportunity to do something that we know, historically in the last several years, has not been present by the time we've gotten to that future time in the calendar,” he explained.

 

Mike North will be part of a live taping of U.S. Farm Report at the 2018 MILK Business Conference. He will also present a breakout on risk management on the third day of the conference. Visit www.MILKBusinessConference.com for more info.

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