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Price picture for 2016 is disappointing

Fri, 08/28/2015

Futures prices this far out already point to belt-tightening in the first half of 2016.

by Dennis Halladay, Hoard’s Dairyman Western Editor

Plenty of change could still happen in the next few months – both good and bad – but right now the milk price picture for the first half of 2016 is not good.

After startlingly high prices in 2014, dairy producers knew 2015 had only one direction to go. They expected much lower prices, perhaps not much above break-even, and they’ve been right so far.

Profits and prepays have generally eased the pain of getting through 2015, but as the year now heads into its final months what should producers prepare for in the next one?

I hate to say it, but more belt-tightening looks likely.

Until we get to November, futures prices at the Chicago Mercantile Exchange for 2016 won’t have much more significance for me than anyone else’s guess. Read more

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