Missouri Dairy Business Update
According to Bob Cropp's Dairy Outlook, "We enter 2013 with weaker dairy product prices and as a result, lower milk prices.
Softer cheese prices may be explained by sales, exports and stocks. Wholesale and retail cheese buyers are waiting to see where prices bottom out before major new purchases. Butter prices are not likely to increase much until later in the year."
"Class III prices even approaching $19 by late summer and fall is still possible. Class IV prices may also be near $18.00 by March and perhaps reaching $18.55 by summer or fall. These prices can all change rather quickly with any major differences in any of the following factors –milk production, domestic sales or exports from what we now think will happen. But, for these higher prices the pattern of milk production needs to change from the increases experienced during November and December. But, as of now it still looks like 2013 prices could end up averaging more than $1.00 higher than each of the 2012 averages of $17.44 for Class III, $16.01 for Class IV and $18.52 for the U.S. average all milk price."
|Futures on the Chicago Mercantile Exchange|
Class III Milk
Class IV Milk
|Current USDA Milk Price Forecasts|
|January 17, 2013||1st Q 2012||2nd Q 2013||
3rd Q 2013
|4th Q 2013|
|Class III Price||17.90 - 18.30||17.70 - 18.40||17.60 - 18.60||17.45 - 18.45|
|Class IV Price||17.05 - 17.55||17.10 - 17.90||16.85 - 17.95||16.90 - 17.80|
|Source: USDA, ERS, Livestock, Dairy & Poultry Outlook|
Historical Missouri milk prices may be found at: http://agebb.missouri.edu/dairy/mkt/index.htm