Market Reports

Strong fluid milk consumption will benefit the whole industry by reducing dairy product output at a time when overall demand is likely taking a sizable hit.

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.

The 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.

The 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.

The markets were awash in red ink on Wednesday, and the selloff gathered speed as the week drew to a close.

Dairy producers can live with those prices, but they are certainly uninspiring, especially after several years of hardship.

The market is still suffering a hangover after over-indulging in October and November and the damage has been done.

Dairy markets were not immune, and after a healthy rally last week markets suffered a sizeable setback.

The steep December selloff was a necessary correction and was not the start of a sustained downtrend. With the exception of butter, dairy demand is outpacing supply and supporting dairy product prices.

CME spot Cheddar barrels dropped to a 10-month low but came roaring back. The powder markets firmed as well.