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A Fence Position for Dairy

With the end of the year, forecasts are coming out with their projections for dairy prices for 2014. As expected it will be another year of volatility and that is why many commodity brokers are encouraging producers to look at a fence position.
Forecasts are out for dairy production in 2014 and even though the growth in cow numbers are lower than earlier anticipated, production per cow should be up leading to
higher milk production. And even though demand should still be solid, volatility is expected to be a part of the price trend. So what is a dairy producer to do? Local 5 ag reporter Mike Austin asked a couple commodity brokers what their risk managemnet strategy is for their dairy producers. 
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Mike Austin Ag Report