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Penn State economist Jim Dunn says the 2017 milk price outlook is better than 2016 but weaker than a month earlier, as USDA cut forecasts for all dairy product prices. Dunn cites a strong dollar, Russia's embargo on EU dairy imports and Middle East problems as depressing factors.
He notes low feed prices will support dairy profitability.
A strong dollar and rising milk output from competing exporters are pressuring dairy prices, which lowers dairy demand for feed. Low feed costs help producer margins, which may sustain herd sizes and milk output.
feedstuffs.comApr 20, 2017After 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 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
