Nate Donnay, Director of Dairy Market Insight at StoneX, has issued his Udder Intelligence report for Feb. 11. His report shows the US market continues to pinball between the bearish fundamentals and the unlimited flow of government funds. The market focus shifted back to government purchases on Thursday as more details of the proposed $1.9 trillion stimulus package were digested. The package could contain about $3.6 billion for commodity purchases and grants to the supply chain. That compares to the $1.5 billion allocated in the Heroes act in late December and the initial $3 billion allocated to food box in the CARES Act.
$3.6 billion is a lot of money. Maybe not enough to push US cheese prices back to record highs given the 3% growth in milk production, but it can probably keep the market in the $1.60-$1.80 range with prices moving above and below the range as purchases (and attention) ebbs and flows.
Donnay also notes NZX futures are pointing to a higher GDT auction next week, while U.S. domestic demand is still weak and production is strong, but government purchases are helping to fill the gap.
Lee Mielke is a veteran dairy journalist and broadcaster, currently carried in a dozen Ag newspapers nationally. This column is prepared especially for the readers of DairyBusiness. Based in Lynden, Wash., he can be reached [Read More …]
Many of the key dairy market statistics reported for March and April indicated that milk prices for U.S. dairy farmers are on the road to improvement. Among them were a rise in the national average all-milk price [Read More …]
Most organic fluid milk is sold through grocery stores and these sales were on the rise Four months have passed since the COVID-19 pandemic caused a shutdown of nearly all aspects of people’s lives. In [Read More …]
Be the first to comment
Copyright 2020 DairyBusiness, LLC. All Rights Reserved.