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Milk prices have bottomed, with the May Class III price at $12.76 for the year low, June at $13.22 and July at $15.35. Class III futures are trading in the $16 range for the rest of the year.
Butter and cheese demand has been firm, though US butter stocks were well above year-ago levels.
A recovery in Class III futures toward $16 supports dairy producer income and feed purchasing, though higher stocks leave the rally vulnerable if demand softens.
farmprogress.comFran O'LearyAug 2, 2016Not 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.
Class III cash prices rising off lows with futures in the $16 range and firm butter and cheese demand indicate US market momentum that drove the futures rally.
Reports that milk prices had bottomed with Class III futures around $16-17 and firm butter/cheese demand reinforced the upward momentum.
