Missouri Dairy Business Update

Volume 13, Number 12
December 2013

Milk Prices

According to Bob Cropp's December Dairy Outlook, "USDA’s monthly milk production report for November shows the growth in milk production is slowing. Cow numbers have fallen by 44,000 head since July. Of the 23 reporting states 4 had fewer milk cows in November than October, no state had increased cow numbers from October, and 8 had fewer milk cows in November than year ago."

"The relatively small increase in milk production, the seasonal good demand for cheese and butter, and very strong dairy exports have resulted in higher dairy product prices and farm milk prices for December."

"Looking ahead into 2014 with continued strong exports and dairy stocks declining any sharp decline in milk prices is not expected. The Class III price could still average near $18.25 for the first quarter and the Class IV price about $21.35. For the second quarter the Class III price could average in the high $17s, and
the Class IV price in the low $20s."

 

Futures on the Chicago Mercantile Exchange
12-27-2013 Dec Jan Feb Mar Apr May June July Aug Sep

Class III Milk
($ per cwt.)

18.99 19.48 18.78 18.62 18.30 18.00 17.85 17.63 17.57 17.60

Class IV Milk
($ per cwt.)

21.49 21.72 21.95 21.75 20.90 20.27 19.67 19.16 19.00 18.95
Source: CME

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