This week the dairy markets continued to feel downward price pressure despite large butter sales according to Robin Schmahl hedge and marketing specialist with AgDairy in this week’s Weekly Dairy Market Recap on AgWeb Radio.
“It’s wobbly and continues to slowly drive lower,” he says. “We have good demand overall but we are at that point of the year where the demand push for the holidays has been filled.”
Listen to the full interview here:
Schmahl says even though cheese prices haven’t fallen off, traders anticipate more weakness in the market as we head into the New Year.
There were 19 loads of block cheese traded this week according to Schmahl. He says barrels closed the week higher but butter was down 13 cents despite 26 loads being traded in two days. Milk was also down three quarters of a cent.
“Even though overall we saw prices higher,” he says. “The January futures set new contract lows this week.”
He says the global market, excess international stocks, the strength of the U.S. dollar and slight increase of production are all factors adding to this downward grind.
“We’re at that time of the year with slower exports with more negativity,” he says.
Next week is a short marketing week on the floor because of the Christmas holiday.
“We are trending lower and I expect that to continue,” he says.