Missouri Dairy Business Update

Volume 13, Number 10
October, 2013

Milk Prices

Note: Due to the U.S. Government shutdown in October, no milk production estimates are available. Most milk price outlook forecasts are also delayed until more information becomes available.

On the CME futures market, Class IV prices continue higher than Class III prices through 2014. This means Class IV prices will continue to be the driver of Class I milk prices.

The Southeast order has a Class I utilization of approximately 70%.

For Missouri producers in the southeast order, their basis (farm price minus Class III price) should be higher than it historically has been.

Futures on the Chicago Mercantile Exchange
10-30-2013 Oct Nov Dec Jan Feb Mar Apr May June July

Class III Milk
($ per cwt.)

18.22 18.62 18.14 17.26 16.89 16.76 16.70 16.69 16.85 17.08

Class IV Milk
($ per cwt.)

20.17 20.51 20.24 19.61 19.20 18.95 18.43 18.40 18.54 18.00
Source: CME

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