The Global Dairy Trade Index is now on the third straight increase after a sharp drop back in July.
The trade saw a 5.5 percent jump after the latest trading event, and it is now sitting at 1,146 after slight bumps in the last two trades. The index fell nearly 7 percent after the July second auction. A majority of products saw increases in average prices.
Industry analysts say the dairy industry is set to see some profitability through the end of the year.
“It is highly, highly unusual that you get a high milk price and a low feed price simultaneously. You almost always have to price your feed when the milk price is no good, your milk when the feed price is no good. Right now, you have that opportunity, and it’s a very productive environment for dairy producers right now. Even though they’re getting less milk production in a lot of dairies because of the avian flu issue that continues to be ongoing, this still works for them, and this is still a shot in the arm after a brutal 18 months when we had losses and a good sign that they’re gonna have some very strong profitability on the farm going into the end of the year, at least,” said Shawn Hackett.
Hackett says it is a good time for producers to make cash sales, lock in feed, and aim to guarantee a margin.
