Milk futures might be nearing peak
Milk futures have been on a wild ride since COVID-19 reached the U.S.
Compeer Financial dairy team director Jim Moriarty says the market has been so volatile, it’s hard to make any predictions.
“But it would seem that we’re going to encourage a milk production response, or some of the milk cutbacks that are still in place will come off. And as those channels fill back up, I would really think we’re near a top.”
He tells Brownfield with the June Class III milk contract around $20 cwt, he’d be surprised if prices continue to move higher.
“And would not be surprised if we maybe step back as we kind of get through this initial surge here in the marketplace.”
Moriarty says he expects Class III milk contracts to be back in the $16 to $17 dollar range heading into the fall.