Missouri Dairy Business Update  
Volume 11, Number 4
April 2011

Milk Prices

According to Robert Cropp's Dairy Outlook, "Milk prices should reach its low in April and May and begin a seasonal increase peaking again in September or October. Class III prices could be above $17 by June and peaking near $18.00 by September. The Class IV price is likely to be in the range of high $19’s to $20 until fall. While this is a much brighter price outlook that what appeared back in March caution is to be noted. Dairy product prices and in turn milk prices are highly sensitive to new market information."

Futures on the Chicago Mercantile Exchange
4-25-2011 Apr May June July Aug Sept Oct Nov Dec Jan 12
Class III Milk (per cwt.) $16.80 $16.16 $16.91 $17.40 $17.79 $17.99 $17.67 $17.10 $16.87 $16.32
Class IV Milk (per cwt.) $19.81 $20.09 $20.35 $20.25 $20.30 $20.11 $19.85 $19.10 $18.64 $17.25
Butter (per lb.) $2.00 $2.00 $2.02 $2.03 $2.05 $2.06 $2.07 $2.05 $1.95 $1.78
Source: CME

Current USDA Milk Price Forecasts
4-14-2011 1st Q 2011 2nd Q 2011 3rd Q 2011 4th Q 2011
Class III Price $16.63 $16.20 to $16.60 $16.00 to $16.70 $15.45 to $16.45
Class IV Price $18.08 $18.10 to $18.60 $16.55 to $17.35 $15.45 to $16.55
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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