Missouri Dairy Business Update
According to the USDA Dairy Outlook, "The lower price for concentrate feeds along with a slightly higher expected all milk price will improve producer margins somewhat. The improvement is not large enough to boost herd size. Consequently, herd size is projected at 9,195 thousand for 2013, unchanged from March’s forecast and below 2012’s average herd size. Output per cow for the year was lowered in April to 21,945 pounds, based on lower February milk per cow data. Based on forecast herd size and output per cow, production is projected at 201.8 billion pounds for 2013."
"The price differential between U.S. and world nonfat dry milk (NDM) prices will likely strengthen exports in the second half of the year. Both fats- and skim-solids export forecasts represent increases above 2012 totals."
|Futures on the Chicago Mercantile Exchange|
Class III Milk
Class IV Milk
|Current USDA Milk Price Forecasts|
|4-16-2013||2nd Q 2013||
3rd Q 2013
|4th Q 2013||2013|
|Class III Price||17.60 - 18.00||18.30 - 19.00||18.10 - 19.10||17.85 - 18.35|
|Class IV Price||18.05 - 18.55||18.50 - 19.30||18.15 - 19.30||18.10 - 18.70|
|Source: USDA, ERS, Livestock, Dairy & Poultry Outlook|
Historical Missouri milk prices may be found at: http://agebb.missouri.edu/dairy/mkt/index.htm