Missouri Dairy Business Update  
Volume 10, Number 4
April 2010

Milk Prices

According to Bob Cropp's Dairy Outlook, "Milk prices will improve as the year progress. Milk production will decline during the summer months and the demand for milk, cheese and butter will increase fall and early winter. Dairy exports should increase as well. But, what is needed for much improved milk prices is a slow
down in milk production. As of now Class III dairy futures reach $14.35 for July, peak at $15.10 for September and end in December at $14.68. While these prices are an improvement over 2009, higher prices are needed for dairy producers to recover from lost equity. There still is a good probability that prices could do better than this, especially for the second half of the year."

Futures on the Chicago Mercantile Exchange
4-29-2010 Apr May June July Aug Sept Oct Nov Dec Jan 11
Class III Milk (per cwt.) $12.96 $13.42 $13.95 $14.52 $15.00 $15.10 $15.04 $14.92 $14.75 $14.58
Class IV Milk (per cwt.) $13.64 $14.56 $15.21 $15.50 $15.65 $15.45 $15.55 $15.55 $15.10 $14.49
Butter (per lb.) $1.48 $1.63 $1.65 $1.69 $1.69 $1.68 $1.68 $1.67 $1.69 $1.64
Source: CME Group

Current USDA Milk Price Forecasts
4-21-2010 1st Q 2010 2nd Q 2010 3rd Q 2010 4th Q 2010
Class III Price $13.85 $13.52 to $13.92 $14.25 to $14.95 $14.66 to $15.66
Class IV Price $13.22 $13.30 to $13.80 $13.69 to $14.49 $13.48 to $14.58
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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