Barron's: Milk Prices Could Head Higher

By SIMON CONSTABLE

After years of decline, milk prices look ready to rally. More frigid winters, lower production in some parts of the world, and more Chinese demand will lead to higher prices.

“People are starting to see that milk isn’t as available as they thought it would be,” says Shawn Hackett, of Hackett Financial Advisors. He sees prices soaring as high as $20 per hundredweight within a year, up from Friday’s closing price of $14.34 for May-dated Class III milk contracts on the CME. Some of this increase is likely to show up in higher milk prices at your neighborhood grocery store. (A hundredweight of milk, depending on whether it’s whole or reduced-fat or skim, is roughly equal to 11.5 gallons.) Read more here.

Photo by Mehrshad Rajabi on Unsplash