Milk Futures May See Another Wave Higher Thanks to El Nino

Milk futures, although $2.50 lower from its August highs and $2.00 less than its June highs, may be setting up for another run to those higher prices if El Nino threats to disrupt weather patterns for New Zealand dairy farmers come true. Class III milk futures are trading up .04 cents (per CWT) currently at $15.79 (CWT) today at the Chicago Mercantile Exchange.

The Australian official news bureau reportedly rated this forthcoming storm to be the strongest since 1997-98 and stated its not going to go away any time soon, but will be felt into the new year. This comes at a time when New Zealand has reportedly reduced the numbers of their dairy cows, culling “poor performing” cows and heifers.

Milk futures trend is currently down with no bottom yet in sight. It will take time and certain price action to change milk futures trend so let’s all enjoy the lower prices at the store while we can.

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