Dairy analyst not expecting market bump from latest Food Box purchase
A dairy analyst with RaboBank does not expect the latest USDA Food Box purchase to have a significant impact on prices.
Ben Laine says even with a third round being announced this week, the bulk of the purchases are still behind us.
“There’s still some left over in that initial $3 million that was put toward it, and the majority of that had been used in the first two rounds. There will be some, but it’s going to be less impactful on markets.”
During a webinar hosted by the University of Minnesota and the I-29 Moo University Consortium Tuesday, Laine said the Food Box program has been very supportive.
“And as we’ve rebounded into some of these really strong cheese and Class III prices, as that cools off into September, which is what I anticipate, we’ll start seeing kind of the more underlying fundamentals come back into play.”
President Trump announced Monday another $1 billion to bolster the Farmers to Families Food Box Program.