Nearly two weeks ago, the U.S. Department of Agriculture released its World Agricultural Supply and Demand Estimates (WASDE) report. Production forecasts for the remainder of 2017 and 2018 are lower because there is an expected growth in milk per cow.
Bryan Doherty, senior market advisor of Stewart-Peterson, told AgDay host Clinton Griffiths these anticipated better prices are due to a weaker dollar and strong demand.
“We continue to push into new highs [in the stock market] practically on a weekly basis, so it looks like we’re seeing some better money flow, better economies and people are eating,” said Doherty.
He said to counter that, dairy producers haven’t cut back and are looking at significant production.
“When you look at the last five months of the year, you can look at a $17 average price on those months,” said Doherty. “If you haven’t sold, consider selling 25 percent, scale up into this.”
Hear Doherty’s full comments on the dairy market and exports on AgDay above.