USDA has forecast a jump in all milk prices to $18.85 dollars per cwt in 2020, up $0.50 above the 2019 forecast of $18.35.
And we know what you’re thinking. Is this for real? We caught up with Mark Stephenson, director of dairy policy analysis at the University of Wisconsin, Madison, at World Dairy Expo for his take on 2020 prices.
“I’ve been saying for almost a full year now that 2019 will be the beginning of the recovery, and right in 2020 is when you see the next peak in prices,” Stephenson says. Here’s a closer look at the USDA numbers:
Stephenson cautions to watch for bigger trends and avoid getting caught up in daily futures market swings.
“I don’t focus too much on what happened in the market today. I keep track of that, but I’m much more interested in the bigger picture—what’s that longer horizon?” he says.