Dairy Market: Uncle Sam gets prices rising
Dairy prices got another shot in the arm this week due in large part to Uncle Sam’s surprise buying spree announced Friday.
FC Stone stated, “Initially the USDA had signaled they would be buying $100 million per month, so we were only expecting $150 million of dairy purchases in round 1 instead of the $317 million that was announced.”
The program can only award new contracts as long as the official national emergency declaration remains in effect. When the Trump administration declares that the emergency is over, the USDA won’t be able to run any further rounds of this program so the USDA appears to be front-loading the program,” said FC Stone.