So, he suggested they average into the bottom. In other words, buy some stock this week, wait a week or two, and then buy some more of the same stocks. You may not end up with the lowest price, but you will be pretty close to it. I think this discussion has implications for the dairy industry. For the past month I have been recommending dairy producers consider locking in a portion of their milk supply over the next 5-8 months.
Nobody wants to lock in a milk price only to find out the market went higher.
But dairy producers should consider this strategy of averaging into the market. Pick the months you are most worried about. For me, that would be June through November. April is just about made, and May will likely continue to be strong for milk prices. So, focus on the outer months.