Dairy prices climb to start the new year
Risk management specialist Mike North with ever.ag says the new year is a happy one so far for dairy producers.
North tells Brownfield, “In these first few days of the new year we have tacked on roughly $1.25 to a lot of the nearby prices on some strength that we’ve picked up in global markets, and followed through on our own with cheese pushing through that magic $2.00 threshold on Tuesday’s spot trade.”
North says the normal increased fall seasonal purchases combined with strong dairy exports and some Section 32 government buying kept demand strong, which helped prices. “The question going forward for us will be whether that will continue through the first quarter of 2022. This is that time of the year when domestically, Americans back away a bit from cheese.”
North says this week’s announcement concerning Canada and the USMCA dispute panel ruling in favor of the U.S. did not affect the big Class III and cash dairy price jumps, but it should help prices if more U.S. dairy can enter the Canadian market.