Missouri Dairy Business Update

Volume 14, Number 4
April 2014

Milk Prices

Pod cast: http://dairy.wisc.edu/PubPod/Podcast/Outlook/Index.html

According to Bob Cropp's April Dairy Outlook, "Strong cheese and dry whey prices for the month of April will result in a new record high Class III price of about $24.25 for the month. This will be the third straight month of record Class III prices."

"These strong cheese prices are the result of good domestic sales, strong exports and lower American cheese production all of which reduced stocks. Cheese exports for the first two months of the year were 44% higher than a year ago."

"Little lower butter and nonfat dry milk prices will result in a little lower Class IV price for April. The March Class IV price was $23.66 and the April price will be near $23.20."

"However, looking ahead we can expect cow numbers to continue to increase and milk per cow to improve particularly in the Midwest and Northeast with a new crop of better quality forages. Producers have already slowed cow slaughter with slaughter numbers through March 9.4% lower than a year ago. But, the growth in increases in milk production will come on slow which could result in USDA’s 2.4% increase in milk production for the year being on the high side. And further with this slower growth in milk production milk prices will likely also decline slower."

Futures on the Chicago Mercantile Exchange
4-25-2014 Apr 2014

May 2014

June 2014

July 2014 Aug 2014 Sept 2014 Oct 2014 Nov 2014 Dec 2014 2015 Average

Class III Milk
($ per cwt.)

24.29 22.70 20.83 20.23 19.83 19.68 19.26 18.80 18.58 17.73

Class IV Milk
($ per cwt.)

23.30 21.99 21.15 20.50 20.44 20.47 20.05 19.70 19.50

17.09

Source: CME

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

Global Dairy Trade Prices: https://www.globaldairytrade.info/en/