Butter remains a strong exception to a pretty solid rule across the Jacoby team at the moment. We’re bearish.
Producers aren’t reporting strong sales. Milk is long across most product categories. There aren’t any great signs that domestic or international demand will turn around, and it will take an immense, painful contraction for a supply response to pull milk checks up to profitable levels on its own.
In this podcast episode, we talked about a recent LinkedIn post Ted made and whether there’s any strong case against bearishness when looking at dairy prices.
We discussed some nuances that could create clusters of retail demand or a strong spot market, but we see them more as opportunities for change than strong inevitabilities.
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