It’s not the news dairy producers want to hear, but one analyst says the outlook for milk prices according to the futures market is not very good.
Dairy analyst Robin Schmahl says with current fundamentals the issue is not likely to change in the near term unless sellers of cheese reduce their offerings on the daily CME spot market. He says the market will need to prove itself before traders become more aggressive buyers.
“We’ve seen retail prices increasing, we’ve seen food service prices increasing and that’s because of higher labor [costs], higher interest rates, a lower availability of transportation trucks, and that all adds up to the cost of milk [in the store] going up instead of following dairy prices down,” Schmahl says.
He adds that the demand for milk has not been able to increase because of higher cost for consumers as well.
New Processing Facility
A new dairy facility is now open for business in Amarillo, Texas. Cacique foods is celebrating its 50thanniversary with the company’s newest location. Its CEO says the new location is near multiple dairy farms and says the expansion is due to the growing demand for Hispanic cheeses. The new 200,000 square foot facility will reportedly bring 200 jobs to the area.
