Missouri Dairy Business Update

Volume 15, Number 5
May 2015

Milk Prices

According to Bob Cropp's May Dairy Outlook, "May milk prices will be the highest thus far this year. The May Class III price will be near $16.20 compared to $15.81 for April, and the Class IV price will be near $14.00 compared to $13.51 for April.
Slower than anticipated increase in milk production, good domestic sales of cheese and butter, and some improvement in dairy exports are the reasons for higher milk prices."

"Milk production continues rather weak in the West in comparison to the Northeast and Upper Midwest."

"An increase in milk production well below 2% is bullish for milk prices. At this time it doesn’t appear that milk prices could either fall or increase sharply for the remainder of the year. Prices could still average $6 to $7 lower than the record high prices of last year. But, with lower feed prices than last year margins (returns over feed costs) are still conducive to increased milk production."

Listen to Podcast

Futures on the Chicago Mercantile Exchange
5-27-2015 May June July Aug Sept Oct Nov Dec Jan Feb

Class III Milk
($ per cwt.)

$16.21 $16.53 $16.87 $17.18 $17.44 $17.47 $17.44 $17.26 $16.90 $16.86

Class IV Milk
($ per cwt.)

$13.98 $14.12 $14.85 $15.08 $15.39 $15.66 $15.87 $15.69 $15.70 $15.96

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