Missouri Dairy Business Update

Volume 15, Number 4
April, 2015

Milk Prices

According to Bob Cropp's April Dairy Outlook, "Dairy product prices and milk prices are holding at higher levels than what was forecasted earlier in the year. In fact, surprisingly dairy product prices have shown strength during April."

"If the growth in milk production continues below 2%, and it looks like this could well happen, milk prices may decline only slightly over the next couple of months and show a little stronger increase for the last half of the year."

"In summary, it now looks like milk prices will fair better than earlier forecasted. But yet dairy futures seem to be a little optimistic with no weakness in milk prices for any of the months ahead. This is a change in dairy futures from a few weeks ago. Now the Class III futures reach the $16’s by May, the $17’s by August and remain there for the remainder of the year. Class IV futures reach the $14’s by May, the $15’s by July and the $16’s by October."

Futures on the Chicago Mercantile Exchange
4-27-2015 Apr May June July Aug Sept Oct Nov Dec Jan

Class III Milk
($ per cwt.)

15.80 16.49 16.81 17.12 17.31 17.40 17.45 17.33 17.26 16.92

Class IV Milk
($ per cwt.)

13.64 14.39 14.96 15.30 15.63 16.02 16.16 16.24 16.19 16.21

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