What are the top four indicators we should be watching to help us understand and anticipate changes in dairy prices? With the amount of data and commentary on the dairy markets, it’s easy to get overwhelmed or become distracted from the big underlying drivers. It was hard to whittle the list down to just four, but here they are.
Farm gate margins. Dairy farmers respond to economic signals. If farmers are making money, we should be anticipating a drop in dairy prices on the horizon. If margins are very weak, we should be looking for increasing prices.