Will a Supply Slowdown Turn Markets Around?

“Without a major demand surge expected from either the domestic or export markets, a slowdown in milk production might need to be the turning point for any price improvement in the second half of the year. But reducing supply at a national herd level doesn’t happen overnight, and the impact on prices can underwhelm,” wrote Ben Laine, Terrain senior dairy analyst, in an article published in the July 3, 2023, issue of Hoard’s Dairyman Intel.

He added, “Producers that took advantage of the high markets last year and purchased insurance through Dairy Revenue Protection (Dairy-RP) or used other hedging strategies have been insulated through at least the first two quarters, but the second half of the year could be a different story.”

Read the rest of the article on the Hoard’s website.