Missouri Dairy Business Update

Volume 12, Number 6
June 2012

Milk Prices

According to Jim Dunn's Dairy Outlook, "The forecast all-milk price for the rest of 2012 is $18.89/cwt. Feed costs have eased somewhat, and will ease further as the season progresses if the weather remains reasonable. One important factor is that the national corn acreage is up, and at least so far, the expectations are that the
crop will be considerably larger. This will help lower feed costs in 2013 as well, which will certainly help producer margins. Of course, feed prices still depend on the growing season weather."

Futures on the Chicago Mercantile Exchange
6-22-2012 Jun July Aug Sept Oct Nov Dec Jan 13 Feb Mar
Class III Milk
(per cwt.)
$15.68 $16.72 $17.03 $17.10 $17.10 $17.05 $16.90 $16.64 $16.44 $16.25
Class IV Milk
(per cwt.)
$13.50 $14.45 $14.60 $14.90 $14.50 $14.60 $14.70 $15.50 $15.50 $15.50
Source: CME
Current USDA Milk Price Forecasts
6-18-2012 2nd Q 2012 3rd Q 2012 4th Q 2012 1st Q 2013
Class III Price $15.30 to $15.50 $15.75 to $16.25 $15.70 to $16.50 $15.05 to $16.05
Class IV Price $13.70 to $14.00 $13.950 to $14.10 $14.30 to $15.20 $14.65 to $15.75
Source: USDA, ERS, Livestock, Dairy & Poultry Outlook

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