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Rabobank economists forecast US Class III milk prices in a $15 to $16 range over the next 12 months, below current futures. They expect Class IV prices to be even lower.
They cite rising US and Oceania milk output and a new Michigan cheese plant coming online in Q4 2020.
A forecast of lower milk prices and expanding supply points to continued pressure on dairy prices, and government aid supporting the market may fade.
en.edairynews.comDamián MoraisAug 26, 2020Not enough comparable past events yet for a historical read.
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.
Rabobank's $15-16 Class III forecast, below current futures, plus rising US/Oceania supply and a new Michigan cheese plant, argued for lower futures and fed bearish sentiment.
