The great dairy bear market of 2009 has ended. Too much milk, combined with a drop in global demand, led to the price collapse. But demand has stabilized, production is still contracting and the government is pouring money into price supports. As a result, it appears the current higher level of prices is here to stay.
The House approved a $121 billion agricultural bill, which includes $350 million for immediate support to dairy farmers. The intent is to extend and increase price