Dairy producers like insurance programs during volatile markets
Prices paid for milk and dairy products remain volatile. Katie Burgess with ever.ag says the dairy markets have been a wild ride this summer. “We saw really low milk prices in June and July, so for dairy producers out there, that probably means the worst milk checks here in the upper midwest are yet to come.”
Burgess says the good news is cheese prices rallied back from around $1.35 a month ago to the $1.90’s for blocks, but she does not expect the price to stay that high. “These markets are volatile, and I would say I don’t think we’re going to stay at $1.96 for that much longer. There’s still a lot of cheese out there so prices could come under pressure again, but probably not nearly as bad as they were.”
Burgess says from a futures market or forward marketing perspective, the levels have been okay but because of the volatility, producers she’s working with are favoring the insurance products including the Dairy Revenue Protection Program, which covers about 25% of the nation’s milk.