Executive warns on commodity price gaps
Here’s Dean Foods CEO Gregg Tanner
as much as we believe the commodity market is pretty stable for the third quarter, I would tell you that I think it’s still extremely volatile for any further out than that, because there’s a considerable gap between the international prices today and the U.S. prices. There is a historical gap between Class III and Class IV milk prices right now. All of those, at some point will have to converge and I just think you’re going to see the volatility of this market play out. I don’t know if it’s fourth quarter, first quarter, second quarter, but those have to come together. Just as an example, U.S. butter prices today are at about $1.99 a pound and international butter prices are at about $1.04 a pound basis the GDP."
