NEWS RELEASE: “Making Sense of Your Milk Price in the Pandemic Economy: Negative PPDs, De-pooling, and Reblending- Mark Stephenson and Andrew M. Novakovic”
“Many dairy industry folks have already recognized that the furious swing in cheese prices will result in big negative PPDs for June milk prices. However, there is more to this story that just the familiar issue of a large and quick increase in Class III prices leading to a negative PPD.
Mark posts estimates of blend prices for every order in the country going through the end of the year, at least based on current CME market opinions. While it is certain that prices will continue to change over time, the chart illustrates the bumpy ride we are in for, if nothing else.”- Andrew M. Novakovic