Missouri Dairy Business Update

Volume 15, Number 3
March, 2015

Milk Prices

According to Bob Cropp's March Dairy Outlook, "Dairy product prices and in turn farm milk prices are holding steady."

"It still appears that milk prices may not fall as low this spring as earlier predicted and also be a little higher for the last half of the year. Dairy futures have declined some the last few days but still remain optimistic with Class III over $16 by June, over $17 by September and holding at that level through the remainder of the year. Class IV futures are over $15 by July and $16 by September and holding at this level for the remainder of the year. But, with milk production entering the seasonal flush and exports soft these prices could be optimistic, at least through July."

"We can expect total milk production to pick up during the spring flush that could strain the capacity of some manufacturing plants in the Upper Midwest and the Northeast and put some downward pressure on milk prices. But, if the growth in milk production compared to a year ago continues less than 2% as it did in February, then there is optimism that milk prices could average higher than earlier forecasted, but still average $6 to $7 lower for the year than last year."

Futures on the Chicago Mercantile Exchange
3-30-2015 Mar Apr May June July Aug Sept Oct Nov Dec

Class III Milk
($ per cwt.)

15.52 15.58 15.77 15.84 16.39 16.87 17.15 17.31 17.33 17.24

Class IV Milk
($ per cwt.)

13.93 13.87 14.24 14.68 14.97 15.31 15.79 16.25 16.30 16.28

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