Missouri Dairy Business Update  
Volume 10, Number 2
February 2010

Milk Prices

According to Robert Cropp's Dairy Outlook, "Class III dairy futures have declined considerably since the beginning of the year when the average for the year was about $15.45. Currently Class III futures are below $14 through June and stay in the low $15’s from September through December with an average for the year of about $14.20. While $14.20 is an improvement over the $11.36 Class III average for 2009, dairy producers need higher prices to build back lost equity in 2009. The level of milk production, domestic milk sales and dairy exports in the coming months will determine if prices will show greater improvement."

Futures on the Chicago Mercantile Exchange
2-24-10 Feb Mar Apr May June July Aug Sept Oct Nov
Class III Milk (per cwt.)
$14.22 $13.26 $13.05 $13.16 $13.53 $14.06 $14.67 $15.00 $14.99 $14.88
Class IV Milk (per cwt.)
$12.86 $13.11 $13.24 $13.34 $13.71 $14.18 $14.30 $14.63 $14.76 $14.54
Butter (per lb.)
$1.35 $1.44 $1.45 $1.49 $1.51 $1.55 $1.55 $1.58 $1.58 $1.61
Source: CME Group

Current USDA Milk Price Forecasts
2-24-10
1st Q 2010 2nd Q 2010 3rd Q 2010 4th Q 2010
Class III Price $14.08 to $14.38 $14.64 to $15.24 $15.31 to $16.21 $15.65 to $16.65
Class IV Price $13.26 to $13.66 $13.52 to $14.22 $14.33 to $15.33 $14.64 to $15.74
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook


Historical Missouri milk prices may be found at: http://agebb.missouri.edu/dairy/mkt/index.htm



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