Missouri Dairy Business Update  
Volume 12, Number 1
January 2012

Milk Prices

According to Bob Cropp's Dairy Outlook, "Record milk prices were set in 2011. The Class III price averaged $18.37 compared to $14.41 in 2010. The Class IV price averaged $19.04 compared to $15.09 in 2010. And the U.S. All Milk price averaged $20.14 compared to $16.26 in 2010. But, while milk prices were a record high so were feed prices which dampened returns over feed costs.

Forecasts are for lower but yet favorable milk prices in 2012. The level of milk production, domestic sales and exports will determine the final prices."

Futures on the Chicago Mercantile Exchange
1-31-2012 Jan Feb Mar Apr May Jun July Aug Sept Oct
Class III Milk (per cwt.) $17.09 $16.52 $16.56 $16.50 $16.57 $16.83 $17.12 $17.15 $17.20 $17.09
Class IV Milk (per cwt.) $16.65 $16.30 $16.35 $16.52 $16.60 $16.68 $16.85 $16.94 $16.95 $16.95
Butter (per lb.) $1.58 $1.52 $1.56 $1.58 $1.59 $1.60 $1.62 $1.64 $1.66 $1.67
Source: CME

Current USDA Milk Price Forecasts
1-19-2012 1st Q 2012 2nd Q 2012 3rd Q 2012 4th Q 2012
Class III Price $16.90 to $17.30 $16.70 to $17.40 $17.50 to $18.50 $17.35 to $18.35
Class IV Price $16.55 to $17.05 $16.45 to $17.25 $16.45 to $17.55 $16.30 to $17.40
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook


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



Back to Missouri Dairy Business Update Index