Milk futures are forecasted to remain weak until late next year as long as strong milk production continues in the EU – putting a damper on any revival in the dairy markets. Milk futures are down .05 cents from last week’s close, currently trading at $14.52 per CWT at the Chicago Mercantile Exchange.
A prominent Dutch agri-bank forecasts whole milk powder will not return to $3,000 per ton until late next year. It was just October of 2014 when milk prices were at their height of $24.50 per CWT (which translates to $2,450 per ton on the American market).
Barb Levy, chief director for The Fox Group’s futures division in Chicago, shared her fundamental view of the milk futures market by stating, “Much of this downturn on milk (futures) prices may be from China previously hoarding milk, to now dwindling down their supplies.” Levy adds, “They are learning what was popular in the USA in the 70’s with stretching supplies with dry milk powder – a fast faded trend.”
The trend for milk futures is down with no bottom yet in sight. Milk futures may be providing a gift for young families with hefty milk drinkers, so enjoy these low prices while we can.
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