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Economist looks at softening dairy markets
A dairy economist says the market continues to show signs of softness. Mark Stephenson is the University of Wisconsin Center for Dairy Profitability Director. He tells Brownfield, “We had price opinions back in May, you know, they were around the $20.00 range for Class III, and you know today, down below $16.50.”
Stevenson says some of that fall in milk prices is from the last couple of USDA milk production reports, which have shown tremendous growth in milk production. “Admittedly, it’s off of the bizarre year that we had last year, but even so, it’s strong milk production. There’s just no way that we can ignore that. We’ve got a lot of dairy cows in the U.S. herd and a lot of capacity to produce milk.”
Stevenson says he believes there are buyers who are waiting because the market has plenty in stock and there’s no rush to obtain products right now.
And one can never trust the zany negative PPDs. Those were supposed to vanish by now, weren’t they?