Smokehouse Creek Fire prompts dairy production concerns

According to a dairy industry expert, volatility is likely to continue for the dairy market as for the Smokehouse Creek Fire rages on, now standing at 89% contained.

Concerns are growing that the largest wildfire in Texas history could have impacted dairy production in the Panhandle.

A Dairy Agent and Broker with Ever.Ag provides some insight.

“So, the question right now is, is that a widespread problem is it a confined to a couple of herds? So, it’s one of those things we like to say in the market, buy the rumor, sell the fact. So, right now it’s a little bit of risk off, I’m sure, for some people who have been selling into this. We’ve been seeing lately especially in March and April, a lot of volatility as people are trying to anticipate, have we found a bottom in cheese, we’ve moved back to $1.40 cheese of late, so it’s a little bit of just markets trying to anticipate maybe a move.”
Jenny Wackerhauser, Ever.Ag Dairy Agent and Broker

She says volatility is likely to continue for the dairy market.

As for the Smokehouse Creek Fire, it is 89% contained.


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