Two major reports come out around this time each month that together present a good picture of what could influence dairy markets in the near term. Those are the USDA Milk Production Report and Cold Storage Report. When milk production is growing and stocks reported in the Cold Storage report are declining, it means dairy demand is strong, which could support higher prices. If milk production is declining and dairy stocks are growing, it is a good indicator that demand is soft, which limits the potential for any significant upswing in dairy prices.
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