Milk markets have been rallying to the upside lately. As of a week ago Friday contracts in August, September, October and November were all trading over $17 per hundred weight.
Produce companies are competing for scarce talent in a tight economy, and that translates to better benefits and higher compensation than a few years ago.
Live cattle futures have faded off the highs seen in mid-March, a sign one analysts thinks is a signal the seasonal price highs may be already baked in for now.
The USDA has released their December milk production reports, delayed by the 35-day government shutdown in December and January. Cow numbers dropped again in December.
Despite slow milk production growth around the world, supply will likely outpace demand in 2019. Trade issues and the strength of the U.S. dollar are inhibiting export growth for American milk.
The U.S. and Philippines have made progress on trade issues of interest to the red meat industry. The agreement also is seeking improved valuation of ag imports.