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Bloomberg reports US school districts are buying milk at volumes resembling pre-pandemic levels, leaving milk supplies tight. Midwest cheesemakers are reportedly switching to powdered milk because they cannot buy enough liquid milk, according to a USDA source.
Tight fluid milk supplies and shifts to powder support dairy product prices and could raise demand for dairy ingredients, a bullish signal for milk values.
bloomberg.comElizabeth ElkinAug 24, 2021After 41 past bullish trade events, Milk (Class III) moved a median -0.1% over 5 sessions (49% higher; middle half -1.3% to +8.1%), and +1.1% 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.
Tight liquid milk supply from strong school demand and cheesemakers shifting to powder points to a supply-side tailwind for Class III prices.
