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Cropp: Milk prices still expected to rise

A dairy market analyst continues to see better prices ahead for milk producers.  University of Wisconsin Professor Emeritus Robert Cropp tells Brownfield it appears April was the low point, and producers can look forward to some better margins.

Cropp says there are two things helping to bolster milk prices.  “What’s driving the prices pretty good is demand is pretty good but the export market has picked up, particularly for cheese and for powder, and even butter so that’s helping to make those prices stronger than they were a year ago.”

Cropp says it’s a little surprising the cheese market is as strong as it is because cheese stocks are building, but he says some buyers might be buying now in anticipation of higher prices later…but not everyone.  “Some are backing off buying right now because there’s a big spread between blocks and barrels and they don’t know whether the market will stay there or come down, so there’s some uncertainty there, but the market is surely better than we anticipated.”

Even if the European Union and New Zealand’s production rise, Cropp expects U.S. exports to improve as China’s demand goes up… and that will also help milk prices.