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SW Wisconsin | I hadn’t looked in a couple of days, that’s quite a jump. I’m standing by what I said last winter: prices are up now on weaker supply, supply will hold now around expected levels until late summer when guys that can’t afford to put up feed run out of old stock. Early indicators are unreliable, but not pointing toward a good feed situation this fall and winter. There is a lot of upside to $/cwt in the 4-12 month timeframe. I wouldn’t be shocked to see $19 and even $20+. Buyers are pricing themselves out of a supply, and I’m not sure they’ve realized it yet, but they will soon. Unless we can get an effective quota system in place prices will be back down to around $14 inside of three, probably two, years, as the remaining dairies make up lost production from the guys going out in 2018-19. | |
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