NEWS
DTN Closing Dairy Comments
Robin Schmahl DTN Contributing Analyst
Tue Jan 29, 2013 04:38 PM CST
Milk

There has been no change in fundamentals with milk futures continuing on a steady downtrend. One would think there would be some short-covering providing a little bounce in the market, but that will not happen in the current market situation. The widening block/barrel spread will need to narrow with barrel price increasing. This would close the gap and would spark short-covering, thereby pushing the market higher. It is debatable if this will happen. An event such as that will be needed to cause a price retracement. Continued erosion of the milk/feed ratio will trigger another round of heavier culling. ...

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