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Following the UK vote to leave the EU on June 23, 2016, commentary is weighing how Brexit could affect US dairy prices. The article notes that the US imports dairy mainly from the EU and New Zealand, and that a strong US dollar would make US dairy less competitive abroad.
It also points to uncertainty over the euro.
Currency moves change the competitiveness of dairy exports and imports, which shifts inventories and prices in a market already carrying excess global supply. A weaker euro and a stronger dollar would pressure US dairy prices.
milkprice.blogspot.comJohn GeussJun 26, 2016After 49 past bearish macro events, Milk (Class III) moved a median -0.6% over 5 sessions (33% higher; middle half -8.5% to +0.6%), and -7.5% over 20.
After 533 past bearish macro events, Euro (USD per EUR) moved a median -0.3% over 5 sessions (33% higher; middle half -1.2% to +0.2%), and -0.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
