September Market Report
It’s early fall. That typically means dairy markets begin tightening up as milk production wanes post-flush; normally, draw-downs start on inventories built in spring and summer.
But this time around, something is off. The only remarkable thing about dairy markets right now is how unremarkable they are. What’s the deal?
Stable trading ranges
As September drew to a close, markets remained unusually long. Inventories and production were both stable when both normally tend to soften. It was evident in the way market prices were moving —or, in this case, not moving— on the Chicago Mercantile Exchange.
Cheddar blocks traded between $1.50 and $1.75 for weeks. Barrels were trading between $1.40 and $1.75. Even now, we’re not seeing anything to indicate prices will break out of those channels on either the high or low end.
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