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Dairy markets starting to slip
A dairy analyst says markets are not performing as well as expected to start the year.
Robin Schmahl with AgMarket.Net tells Brownfield cash cheese markets have been experiencing unprecedented volatility.
“That’s changed the market dynamics a little bit,” he says. “It’s depressed the potential for prices and that dims the outlook coming through this year.”
He says record levels of butterfat and protein components have caused buyers to make purchases on an as-needed basis.
“You’ve got these voids, I call it, in the market where you can see this 7-8-11 cents moves from one day to the next as the buyers and sellers are, I’ll use the term complacent, and they just want to buy and sell on their terms,” he explains.
Schmahl says exports could struggle over the next few months, especially as tariff threats weigh on trading relationships.
He says if sales follow previous buying trends, export demand should pick up in the second half of the year and create better prices for farmers.
Brownfield interviewed Schmahl following the recent Missouri Dairy Expo where he was a featured speaker.
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