Andy Faulman, broker with ever.ag, says there’s definitely a seasonal spike happening in the dairy product complex. The butter market took a six cent jump on Wednesday, indicating seasonal baking is upon us.
He says there’s been a big jump in the international space, catching up to the rest of the world in terms of price. Milk production has been steadily declining in the U.S., France and Germany, for example, playing a role in rising costs.
But there’s a constant challenge in infrastructure. Faulman says there’s been record shipping container congestion overseas. But export data shows that food isn’t having a hard time getting out. Exports are looking good for cheese. He says nonessential items, like toys for Christmas, are faring worse in the ports. It helps that the U.S. can ship via rail and truck to our trade partners to the north and south — Canada and Mexico.
Looking ahead to 2022, Class III exports look good for the U.S. in terms of prices, Faulman says.