The Latest: May - 2026
The Short Squeeze Is Over
When Wile E. Coyote plummets off a cliff, Warner Brothers inevitably plays a “descending slide whistle.” That heart-dropping sound echoed across LaSalle Street this week as the bottom fell out of the milk powder market. The short squeeze is over. The two milk powder manufacturers who were desperately bidding for product to meet the commitments they could not fill with their own supplies due to food safety recalls have likely caught up and are back to using their own powder. And sky-high prices have killed demand from other buyers.
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Plunging stocks, cheap oil, and a strong dollar would normally spell disaster in the dairy markets. There was a lot of red ink on LaSalle Street but the damage was not nearly as extreme as feared.
View reportThe dairy markets sprinted out of the gate on Monday, but they couldn’t sustain such an energetic pace. The dairy markets are fixated on the spread of the Coronavirus (COVID-19) and its potential impact on the economy and consumer behavior. However, there are a lot of good things to be said about dairy market fundamentals.
View reportThe markets were swamped in waves of selling due to fears that the coronavirus would spread. The dairy bulls finally came up for air on Friday, bringing some much needed calm to the dairy complex.
View reportThe markets were awash in red ink on Wednesday, and the selloff gathered speed as the week drew to a close.
View reportDairy producers can live with those prices, but they are certainly uninspiring, especially after several years of hardship.
View reportThe market is still suffering a hangover after over-indulging in October and November and the damage has been done.
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