Latest News From Alan Levitt

Necessary supply corrections have yet to materialize.

Not counting China and Russia, global trade was up more than 10 percent in the first half of the year.

Lighter shipments of cheese and whey were a drag on overall volume.

Marc Beck: We don’t think real recovery is at hand.

Purchases by the major buyers was flat, after five years of healthy growth.

Overall volume and value is the lowest since February.

Ban heightens global competition as displaced European exports seek alternate ports.

But overall volume is down as other products are lagging.

Global markets and exports now drive U.S. dairy prices.

Expensive feed is going to be problematic in 2012; enough to drive higher commodity and milk prices this summer.

Further price erosion could occur in the first quarter after buyers assess their year-end inventory positions.

Here's one dairy outlook for 2012.

When world dairy markets strengthen, U.S. markets strengthen. And when the world market softens, our markets soften as well.

Financial speculators are likely adding to the volatility in corn and, possibly by default, dairy markets.

Even in red-ink-laden 2009, the ratio of Class III milk to corn was about 3-to-1. Next year it’s shaping up to be closer to 2-to-1.

With global stocks at all-time lows, the markets are particularly susceptible to shocks of any kind. Virtually any wild card could alter the global situation. Here are three big factors to keep an eye on.

The primary destination of increased production was overseas in the form of nonfat dry milk and skim milk powder.

Dry whey prices are now 30¢ higher than they were two years ago, effectively adding $1.80 to the Class III milk price.

In the first six weeks of 2011, dairy's price factors were nothing short of remarkable.

The return of global food inflation is one of 2011's big stories, with much focus rightly turned to grain prices.

2011 is shaping up to be another highly volatile year for dairy producers.

It’s fall harvesttime—an appro-priate point at which to assess the bulls and bears in the marketplace in an effort to get properly positioned for the year ahead. At this writing (just ahead of Labor Day), projections are for above-average prices next year, but can we get there?

Once upon a time, all the world’s dairy suppliers wanted to sell to the U.S.

Sharply higher U.S. cheese exports this spring dramatically reversed imports’ historical pattern.

Dairy prices trend upward, though reasons elusive.

The optimism of December failed to materialize. "The worst is over,” we proclaimed. And then April milk futures, which traded above $15.50 just prior to Christmas, fell to $12.35 just three months later.

Scarred from the volatility that has trampled the world dairy markets in the last three-and-a-half years, traders have grabbed onto Fonterra's monthly commodity auction as a new global benchmark.

Milk prices will be better in 2010, but how high will we go, and will it be enough?

There may be no greater legacy from 2009 than the decimation of the California dairy industry.