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Bloomberg reports that dairy farmers are increasingly hedging with futures as price volatility rises after US government support was scaled back. Outstanding futures and options for butter and nonfat dry milk reached a record in April, according to CME Group.
Farmers face record US milk output even as domestic consumption declines, and feed and labor costs are rising.
Growing hedging activity reflects persistent price volatility and oversupply in dairy, which can weigh on milk prices. Rising feed and labor costs add pressure on producer margins and feed demand.
perishablenews.comShruti Singh, Lydia Mulvany, BloombergMay 7, 2018Not 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.
